Pacific Securities said on Wednesday that its board of directors has agreed to set up a joint-venture securities company in Laos.

Pacific Securities said it will invest up to 35 million yuan ($5.51 million) in the joint venture via newly created organizations and direct equity participation in cooperation with local financial institutions.

The new company will be registered in the capital city of Laos, Vientiane, with a scope of business including all the securities transactions allowed by local laws.

The draft plan still needs to be approved by Chinese regulators. The final plan and details of the deal will be determined according to the input of Laotian authorities.