KUALA LUMPUR (May 18): Malayan Banking Bhd (Maybank) has dissolved its indirect subsidiary Mayban Securities (HK) Ltd (MSHK) as part of a corporate rationalisation exercise at Maybank Investment Bank Bhd (Maybank IB).

MSHK is a subsidiary of Maysec Sdn Bhd which in turn is wholly owned by Maybank IB. Maybank IB is a wholly-owned subsidiary of Maybank (fundamental: 1.5; valuation: 1.45).

In a filing with Bursa Malaysia today, Maybank said MSHK was set up initially to undertake share and stockbroking business.

The liquidation of MSHK was part of the corporate rationalisation exercise at Maybank IB. 

"The dissolution of MSHK will not have any material effect on the consolidated earnings or net assets of Maybank for the financial year ending Dec 31, 2015," said Maybank.

According to a Maybank IB spokesperson, Maybank continues to have an investment banking and equities presence in Hong Kong through Kim Eng Securities (Hong Kong) Ltd, a subsidiary of Maybank Kim Eng Holdings Ltd.

Kim Eng Securities (Hong Kong) also provides research, margin financing and futures and options services, among others.

"To develop its business in Hong Kong and help Maybank Group attain its aspirations in Greater China, Kim Eng Securities (Hong Kong) recently hired John Fei as its chief executive officer," said the Maybank IB spokesperson.

Maybank Kim Eng Holdings is wholly-owned by Maybank IB Holdings Sdn Bhd, which in turn is 100% owned by Maybank.

Maybank shares rose two sen or 0.2% at 12.30pm to settle at RM9.34 for a market capitalisation of RM87.13 billion.

The stock has gained 2% this year versus the FBM KLCI's 3% rise.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)