The purchase of a controlling stake in Hong Kong's Taifook Securities Group would be financed by China's Haitong Securities with its own cash reserves, supported by bank loans, announced the company on Tuesday.

Furthermore, 53 percent Hong Kong's Taifook Securities would be bought by Haitong, China's second-biggest listed brokerage by market value for $235 million by means of its Hong Kong unit.

However, Haitong does not intend to pump more capital into its Hong Kong unit, as per Li Baogou, an investment official. He specified that they don’t have any acquisition plans presently.

A news conference held recently was informed by Jin Xiaobin, Haitong's board secretary that Haitong intended to expand its business outside China's mainland via the Tiafook acquisition.

Jin added, “Acquisition is an effective way for us to expand business in Hong Kong. It is also a very important step in Haitong's strategy to internationalize its business.”

Jin explained further that the global financial crisis have given rise to a better environment for global mergers and acquisitions, “with asset prices being at lower levels and M&A costs reasonable.”