Brokerage consolidation in Taiwan continues with bid for KGI

The bid by China Development Financial Holdings CDFH for KGI Securities last week is the latest in a series of takeovers in Taiwan’s securities industry as participants struggle to cope with a stagnant market where daily trading volumes are no longer growing.

In that environment cost control and scale have become increasingly important and, according to a Taiwan-based banker, companies have no choice but to turn to MA to defend their margins.

CDFH’s move, which aims to merge KGI with its own wholly owned brokerage subsidiary Grand Cathay Holdings, is the fourth major acquisition in the Taiwan securities industry in as many years and comes...