The 50-50 joint venture will bring the brokerage to China, Hong Kong, Singapore, Thailand, Malaysia, the Philippines, Taiwan and Indonesia. 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. 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 capitalization of the Hong Kong stock market. The group has ties to several of Asia's most prominent Internet businesses. Corp. All Rights Reserved.