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Competition forces Kim Long restructure
Harsh competition amongst securities companies had encouraged Kim Long to restructure its business, Chairman of Kim Long Securities (HNX: KLS) said after announcing on Wednesday that the company would stop providing securities services.
"The core services of a securities company haven't earned us enough to ensure benefits for the shareholders," said Chairman Ha Hoai Nam.
A common level of brokering provision is about 0.2 per cent on trading value which has shown a downtrend due to the competition amongst securities firms. Meanwhile, expenses for this service tended to rise, Nam said.
In 2010, brokering services earned us about VND18.3 billion (US$871,400), accounting for just 6.7 per cent of Kim Long's total turnover, he explained.
"If we maintain our core business as a securities company, business performance will be impacted sharply and shareholders will suffer."
Kim Long Securities will stop providing securities services, and change its business focus to property and equity capital investment, as well as open to the IT, trading and e-commerce sectors. The company will change its name to Kim Long Corporation and keep its listing on the Ha Noi Stock Exchange.
"We will focus on equity capital investment and the diversified business will support us with the core services," Nam added.
vietnamnews
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