Rising Demand for Foreign Stocks

GoodMorning Shinhan Securities'overseas stock accounts increase by 200 pct

GoodMorning Shinhan Securities Co. is known as a leader in overseas securities transaction services among the major offline securities companies. In April, the company launched a special unit for overseas securities transactions, and, as a result, the number of overseas accounts rose more than 200 percent so far this year compared to last year. This rise was led by new accounts, which will likely make this year a turning point in the company's overseas share transaction service.
The jump has been attributed to an increase in the number of housewives and young career women putting their money in overseas funds as well as in the number of long-term investors who want to hold onto their investments for at least 3 years.
Overseas funds available from GoodMorning Shinhan include those for China, Hong Kong, the United States, Japan and Indonesia. Funds for China, the United States, and Hong Kong are offered through HTS and the others over the telephone.
In the near future, stocks of Vietnamese companies will be available through the company's share trading service. Countries where HTS is available for stock transactions will have a special program for trading.
In China, on and offline transactions are possible, but the commission is rather high at 0.8 percent for online transactions and 1 percent for phone transactions. Hong Kong charges a commission of 0.6 percent for phone transactions and 0.4 percent for online transactions.
There is also a minimum investment requirement to buy overseas stocks. In the case of B shares in Hong Kong, for example, the minimum order is 500 or 1,000 shares, while it is 2000 shares for U.S. securities.
Company officials said there has been a dramatic increase in the purchase of overseas shares this year and suggest that investors should take a long-term look at their investment in foreign stocks, as there is a transaction tax.
Shinhan Financial Group reported an H1 net income of 1.6 trillion won, up 56.3 percent from the same period last year. As a result, the group's NPL ratio rose to 1.12 percent.
Shinhan Bank posted a net income of 1.54 trillion won, a 62.1 percent year-over-year increase. GMSH Securities recorded a net income of 76.4 billion won, Shinhan Life earned 65.4 billion won and Shinhan Capital posted 22.2 billion won.
LG Card recorded a net income of 280.7 billion won in H1, while Shinhan Card posted 111.2 billion won in net income during the same period. Non-bank subsidiaries'contributions to the group's total net income amounted to 26.7 percent, up 3.2 percent. Non-bank contributions rose to 36.3 percent excluding one-off factors such as 370 billion won in LG Card related income and 217.7 billion won from the disposal of SFG shares, etc.
Corporate loans provided by Shinhan Bank rose by 15.2 percent or 7.4 percent backed by an increased demand for working capital reflecting favorable export growth and facilities investments following heightened expectations of an economic recovery. Loans for SMEs jumped 21.7 percent or 7.5 trillion won year-to-date.
Accumulated net interest margin for the period was 2.27 percent, similar to the 2.28 percent during Q1. The group's non-bank affiliates recorded net income of 562.3 billion won, a rise of 102.8 percent over the same period last year.
SFG's total assets amounted to 259 trillion won as of the end of H1, up 19.8 percent or 42.7 trillion won from the end of last year. Total assets in the banking division reached 201 trillion won at the end of June, up 12.2 percent or 21.9 trillion won from the end of last year. A 9.9 percent increase came from loans made in the Korean currency while loans in foreign currencies decreased 0.6 percent or 39 billion won. nw

Pres. Lee Dong-girl of GoodMorning Shinhan Securities Co.

The website of GoodMorning Shinhan Securities Co.