Fortune Securities Co has won regulator approval to gain a 67 percent stake in China Euro Securities Ltd from the current majority shareholder Hunan Valin Iron & Steel Group Co, the firm said in a statement.

In return for the transfer, Hunan Valin, a steel maker, will receive a 28 percent stake valued at 600 million yuan (US$77.61 million) in Fortune Securities as its second biggest shareholder.

Shanghai-based China Euro started operations in April 2003, becoming the second Sino-foreign investment bank approved to underwrite share sales in the mainland after Morgan Stanley's China International Capital Corp.

CLSA Ltd, the Asian brokerage unit of France's Credit Agricole SA, bought a 33 percent stake in the venture, the upper limit allowed by Chinese securities regulator, while Xiangcai Securities Co held the balance.

Last July, Xiangcai sold its entire 67 percent stake in China Euro to Hunan Valin as part of its restructuring after the Chinese broker met financial difficulties. No financial terms were disclosed at that time.

Fortune Securities was established in August 2002 and has a registered capital of 2.14 billion yuan. It has total assets worth 3.3 billion yuan and net capital of about 1 billion yuan.

"It's good that the shareholder has changed back to a broker, which could help the venture with more expertise and client sources," said Wu Ke, an associate from Zhongtian Investment Consulting Co.

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