On October 13th, while the Hang Seng Index trended lower, the Hong Kong stock YC Securities Financial (HK.01428) achieved a significant surge of 34.52%.

The counter-trend rise of YC Securities' stock is primarily related to Ant Group. It is reported that the matter of Ant Group acquiring YC Securities has been approved by the Hong Kong Securities and Futures Commission (SFC). Currently, it still requires approval from the National Development and Reform Commission to be finalized.

YC Securities Acquisition Case Approved by Hong Kong SFC

As early as April 25th, YC Securities announced that Shanghai Yunjin, through its subsidiary Ant Fortune, initiated a voluntary general offer to acquire YC Securities at HKD 3.28 per share. The transaction involves approximately 858 million shares, representing about 50.55% of the total issued shares, with a total value of HKD 2.814 billion. If the aforementioned transaction is successful, YC Securities will change ownership and come under the umbrella of Ant Group.

Public information shows that Shanghai Yunjin is a wholly-owned subsidiary of Ant Group. Its legal representative is Huang Hao, who is a Senior Vice President of Ant Group and the President of the Wealth and Insurance Business Group.

Ant Fortune is a wholly-owned subsidiary of Shanghai Yunjin. It is a fintech service company and a one-stop wealth management service platform under Ant Group. Its business scope includes financial information services, financial product research and development, design, consulting services, etc. The services for wealth management categories such as Yu'ebao, funds, gold, and fixed-term products within Alipay are provided by Ant Fortune.

On the evening of October 10th, the aforementioned acquisition case saw new developments. YC Securities announced that the Company and the Offeror hereby provide an update to the Company's shareholders and potential investors. On September 23rd this year, the Offeror obtained approval from the Hong Kong SFC under section 132(1) of the Securities and Futures Ordinance for the Offeror and other relevant persons to become substantial shareholders of the regulated group companies. This approval remains valid provided that the Completion is implemented within six months after the approval date or within a longer period agreed in writing by the SFC.

YC Securities also stated that the Offeror has submitted application materials to China's National Development and Reform Commission and has been actively communicating with them. The relevant processes with the NDRC regarding the acquisition matter are progressing as planned. The Offeror and the Company will continue to advance the fulfillment of the completion conditions.

What Impact Lies Behind YC + Ant?

YC Securities was founded by its founder Ye Maolin in 1995. Its main business scope includes Hong Kong stock trading, stock margin financing services, securities custody and agency services, futures and options trading, leveraged foreign exchange trading, and spot gold and silver trading.

East Money (300059) shows that, as of now, Ye Maolin holds exactly 858 million shares of YC Securities, accounting for 50.55%. If this transaction is successful, YC Securities will officially change ownership.

In terms of service characteristics, YC Securities primarily promotes "low commissions." In 2003, when the government abolished the minimum commission system, YC Securities took the lead in significantly reducing commissions from 0.25% to 0.05%, becoming the pioneer of flat commissions, while simultaneously vigorously promoting online trading. Relying on the city's lowest commissions and fastest speed, YC Securities developed rapidly.

Regarding this acquisition, YC Securities previously stated that this cooperation will drive the company's future business growth, promote the digitization and transformation of YC Securities, elevate business operations to a higher level, and become a leading trading platform backed by cutting-edge technology.

Ant Group stated: It is confident in the long-term economic development of mainland China and Hong Kong and firmly believes that the combination of technology and wealth management can bring huge market opportunities. Leveraging Ant Group's product and technological innovation capabilities, YC is expected to extend its services to a broader age range of customers and enhance the existing customer experience, thereby driving further business growth while accelerating digital transformation.