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China Finance Online Announces New Partnership with Zhongshan Securities

2014-09-23 06:04 ET - News Release

BEIJING, Sept. 23, 2014 /PRNewswire/ -- China Finance Online Co., Limited ("China Finance Online", or the "Company") (NASDAQ GS: JRJC), a leading web-based financial services company that provides Chinese retail investors online access to securities, commodities, and wealth management products, today announced that it has entered into a strategic partnership agreement with Zhongshan Securities Co., Limited ("Zhongshan Securities"), to integrate with China Finance Online's newly-launched web-based trading platform, "Securities Master," or "Zhengquantong," with Zhongshan Securities' trading and settlement system. Along with the Company's previous partnership with CITIC Securities, Co., Ltd. (SHA: 600030), this partnership will allow China Finance Online to offer a competitive commission rate to investors, strengthen its platform's online trading capabilities and further expand its broad user base.

China Finance Online's new partnership with Zhongshan Securities, which is one of the oldest and respected securities firms in China, will allow customers to easily create new trading accounts and offer highly competitive commission rates, which can be as low as 0.025% for new trading accounts. Zhongshan Securities will also be able to provide users with additional services such as access to microfinance loans and several other products. As a key part of the Company's new strategy for "Securities Master," China Finance Online aims to continue to expand its partnerships with more securities firms, enabling it to offer an integrated financial platform with more comprehensive products and services to its broadened base of retail investors.

"With the recently announced government deregulation in the finance industry, investors in China will be able to open multiple trading accounts at multiple brokerages, giving them great flexibility in making financial decisions," stated Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online. "By continuing to demonstrate our industry expertise and provide comprehensive financial products on our integrated financial platform, we firmly believe that we are building a solid ecosystem that will continue to attract new users and strengthen our foundation for future monetization."

About China Finance Online

China Finance Online Co., Limited is a leading web-based financial services company that provides Chinese retail investors access to stocks, commodities and wealth management products. The Company's two prominent flagship portal sites, www.jrj.com and www.stockstar.com, are ranked as top financial websites in China. In addition to the web-based securities trading platform, the Company offers basic financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers including domestic financial, research, academic and regulatory institutions. China Finance Online also provides brokerage services in Hong Kong.

About Zhongshan Securities

Zhongshan Securities Co., Limited was founded in 1992 and is one of the first securities firms established in China. Zhongshan Securities is built on the philosophies of integrity, steadiness, innovation and harmony. Zhongshan Securities provides a variety of services including, but not limited to, securities brokering, securities trading, investment-related financial advisory, asset management and financing, targeting Internet-era investors.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, this release contains the following forward-looking statements regarding:

  • our prospect on the newly launched web-based stock trading platform, Securities Master, and its integration with our existing financial services and Zhongshan Securities' trading and settlement system;
  • our prospect on the growth of our financial platform and online trading capabilities;
  • our prospect on transferring Zhongshan Securities' and our user bases to the newly launched stock trading platform as well as attracting new users;
  • our prospect on the collaboration with Zhongshan Securities and expanding the number of partnered securities firms;
  • our prospect on offering more comprehensive products to our customers and strengthening our foundation for future monetization; and
  • the market prospect of the business of Internet finance.

Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which risks and uncertainties include, among others, the following:

  • the changing customer needs, regulatory environment and market condition that we are subject to;
  • the uneven condition of the world and Chinese economy that could lead to volatility in the equity markets and affect our operating results in the coming quarters;
  • the impact of the changing conditions of the Chinese stock market, Hong Kong stock market and global financial market on our future performance;
  • the unpredictability of our strategic transformation and growth of new businesses, including our online securities trading services and platform;
  • the degree to which our strategic collaborations with partners will yield successful outcome;
  • the prospect of integrating our newly launched web-based securities trading platform with our strategic partners' trading and settlement system(s);
  • the prospect for China's high-net-worth and middle-class households;
  • the prospect of equipping our customer specialists with new technology, tools and financial knowledge;
  • the competition we are facing in the new business of Internet finance and online securities trading;
  • wavering investor confidence that could impact our business; and
  • possible non-cash goodwill, intangible assets and investment impairment may adversely affect our net income.

Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F under "Forward-Looking Information" and "Risk Factors". The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

SOURCE China Finance Online Co., Ltd.

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