KUALA LUMPUR (Aug 2): Industronics Bhd has secured US$1 billion in funding from China’s state-owned investment holding company, State Development & Investment Corporation Ltd (SDIC), for collaboration on asset management and capital market services.

In a statement on Tuesday (Aug 2), Industronics said it entered into a deal with SDIC for collaboration on asset management and capital market services, in line with its plans to acquire 10% of Hong Kong-based renowned stockbroking, asset management and credit firm Bluemount Financial Group Ltd.

Industronics said it will set up an investment bank in Labuan and work with the regulators on compliance-related issues.

The company said part of the future plans include an acquisition or collaboration with a local stockbroking firm in Malaysia to expand its offerings in the capital market services.

It said the acquisition of 10% in Bluemount offers the perfect synergy to the collaboration as Bluemount has a team of professionals who have vast experience in the capital market services.

Industronics executive director Datuk Chu Boon Tiong said given SDIC’s strong track record in investment, restructuring and capital operation, he is confident that this will fast track the company to expanding into capital market services.

“Our role is to deal with the local authorities and regulatory bodies for the setup of the investment bank while SDIC will help on the funding for us to tap on the booming market in asset management and capital market services,” he said.

Chu said Industronics is confident that its network and expertise on the local front will help to expedite the setup of the investment bank in Labuan.

He added Industronics’ expertise in cloud solutions and digital offerings, the proposed acquisition of Bluemount and collaboration with SDIC will put them in the driver's seat to push for digital brokerage services in the region, capturing the potential from the potential delisting of China companies on the US stock exchange.

At midday break Tuesday, Industronics was unchanged at 10.5 sen with 1.77 million shares traded.