ASL-BOCT partnership targets Thai market

A memorandum of understanding will lead to the sale of Chinese investments

Mr. Chanchai, seated on the left, and Wu Lin, senior executive vice president of Bank of China (Thai) Plc (BOCT), seated on the right, sign a memorandum of understanding (MoU) on January 28.

ASL Securities has signed a Memorandum of Understanding (MoU) with Bank of China (Thai) Plc (BOCT) to collaborate on the local distribution of Chinese investment products, including global debt securities, equities and IT development .

ASL has also launched a new wealth management and investment advisory service focused on high net worth and institutional investors. The company aims to undergo a full digital transformation this year and move all of its services to an online platform.

ASL and BOCT signed the memorandum of understanding on January 28, with the aim of expanding their business and providing Thai investors with more channels to invest in foreign stocks and investment products, while providing foreign investors with a greater exposure to the Thai stock market.

Chanchai Kultavarakorn, Executive Chairman of ASL, said ASL’s cooperation with BOCT is a major step in its business expansion plans, as Bank of China is one of the largest and oldest banks in China with branches in many countries around the world.

He said that through this cooperation, Thai investors will have better access to investment products from the growing Chinese market.

Products available include equities, high quality foreign bonds with a credit rating of A+ or better, and short-term financial instruments such as commercial paper.

In preparation for the new wealth management service, Chanchai said ASL has worked to improve the quality of its research, hire more staff to support services in English, Chinese and Thai, and set up an institutional sales team to specifically serve institutional investors.

ASL currently serves as the mutual fund selling agent for nine asset management firms. Mr. Chanchai said that ASL will sign a contract with 16 other companies in the first quarter of this year and connect the fund trading system to Settrade Streaming Fund Plus, which is a mutual fund trading application and monitoring of investment portfolios.

Regarding the brokerage business, ASL currently operates around 90% of its brokerage services online and has an average daily trading volume of 1.2-1.5 billion baht per day.

Regarding the strategy and direction of investments in the first half of this year, Warut Siwasariyanon, ASL’s deputy general manager for the institutional research department, said that electric vehicles, food and commerce are the high growth sectors.

Hotels and airlines are also interesting as their stock prices should rebound when the pandemic situation starts to improve.

Currently, ASL’s shareholding consists of Government Savings Bank (25%), Venture Cap Co (46%), Mr Chanchai (5%) and Sethiwan Group (20%).

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