Beijing-headquartered Puhui Wealth Management will formally initiate an international development strategy beginning with expansion in the Hong Kong market.
The plan comes after it acquired Hong Kong-based Granville Financial Services in December 2019. Granville offers services in securities, futures and asset management. With the acquisition, Puhui now holds SFC licences for dealing in securities (Type 1), dealing in futures contracts (Type 2) and asset management (Type 9).
Founded in 2013, Puhui Wealth is a third-party wealth management service provider targeting high net worth individuals and private clients. In December 2018, the firm’s ordinary shares were listed and began trading on the Nasdaq Capital Market.
“Over the last year, we have worked to position Puhui to take advantage of the substantial growth in wealth management services in the Hong Kong market,” Zhe Ji, chairman and chief executive of Puhui, said. “With the addition of securities licences acquired in the Granville expansion, we feel that we can market our existing product portfolio to a wider customer base,” he said.
Several other Chinese wealth managers have expanded outside of the mainland in recent years, including Tang Wealth International, Tong Fang Wealth Management and Hefeng Family Office.
Direct investments
The acquisition of Granville also enables the firm to broaden the firm’s existing product portfolio.
Zhe said that Puhui will be diversifying its clients’ portfolio through direct investments in potential IPOs in Hong Kong’s capital markets.
In a separate statement, Puhui said that two of the firm’s portfolio investments successfully completed IPOs on the Hong Kong Exchanges and Clearing Market (HKEX), including one in November 2019 and the other in October 2020.
“Our goal as a diversified wealth and asset manager is to generate favourable returns for our clientele through Puhui’s ability to find early-stage investments in a variety of sectors,” Zhe said.
“We have been very pleased to see our healthcare investments culminated in successful IPOs in the last two years. Looking ahead, we expect to deploy additional capital into this sector due to high demand for plague prevention products following the Covid-19 pandemic,” he said.
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