Haitong gets backing for private equity arm

Haitong Securities has won regulatory approval to participate in private equity investments, according to a statement filed with the Shanghai Stock Exchange, Bloomberg reported. Shanghai-based Haitong, China’s biggest brokerage by market value, follows CITIC Securities and China International Capital Corp, which were permitted to start investing in privately-held firms last year. Haitong said in April that it would apply for a license to start a private equity arm with an initial registered capital of US$146 million and an investment cap of around US$430 million. Nanjing-based Huatai Securities also claims to have received approval to enter the private equity business.