DLJdirect and Hong Kong-based
conglomerate Hutchison Whampoa Ltd. Tuesday formed a joint venture to bring DLJdirect’s services to seven Asian
countries.
The 50-50 joint venture will bring the brokerage to China, Hong Kong,
Singapore, Thailand, Malaysia, the Philippines, Taiwan and Indonesia.
U.S.-based DLJdirect (DIR)
previously launched a site in Japan with Japanese bank Sumitomo. Financial
terms of the agreement were not disclosed.
Hutchison Whampoa, which is making major waves in Asia through its recent
Internet plays, will add its branding and customer base to the mix. A data
center, a call center and Hutchison’s WAP functionality technology will also
be carried to the venture. Wireless access to DLJdirect’s services is seen
as a major advantage in the deal, allowing the companies to tap Asia’s
well-developed wireless market.
Users can access U.S. market trading as well as trading action on the local
level. The brokerages are expected to roll out later this year.
“This new relationship compliments our very successful partnership in Japan
with Sumitomo and brings us closer to our goal of developing a global
trading platform,” said Blake Darcy, DLJdirect’s chief executive officer.
“We believe that there is tremendous potential for online investment
services in this region,” said Hutchison Whampoa Group Managing Director
Canning Fok. “It is expected that up to 40 to 50 percent of current retail
trade volumes could switch to the online business, as experienced in South
Korea and Taiwan, which are to date, probably the most advanced online
trading markets in Asia and the world.”
Hutchison Whampoa is part of the Li Ka-shing group of companies which
together represent 16 percent of the total market capitalisation of the Hong
Kong stock market. The group has ties to several of Asia’s most prominent
Internet businesses.
Hutchison’s tom.com IPO is one of a handful of developments currently
spinning Hong Kong’s Net sector into an investor frenzy. Li Ka-shing is
father of Richard Li, Pacific Century CyberWorks’s leader, and appeared as a
potential ally in merger talks which led up to PCCW’s $38.1 billion purchase
of Cable & Wireless HKT earlier today.
The conglomerate also has $1.2 billion with Global Crossing for a network
build in China, and with NTT DoCoMo for mobile operations including wireless
Net access. The company is also one of four participants in e-commerce
portal iBusiness Corporation.com, and is Priceline.com’s Asia partner for
sites in China, Hong Kong, India, Taiwan, Indonesia, Singapore, Thailand,
Korea, Malaysia, the Philippines and Vietnam.
