Credit Suisse takes control of China securities joint venture
- The Swiss bank ups shareholding in Credit Suisse Founder Securities to 51 per cent from 33.3 per cent
- Names Janice Hu as chairwoman of the China securities joint venture
Credit Suisse has taken control of its China securities joint venture, Credit Suisse Founder Securities (CSFS), becoming the latest foreign bank to take advantage as the country opens up its financial services sector.
The Swiss bank said on Monday that it had upped its shareholding in CSFS to 51 per cent from 33.3 per cent after the China Securities Regulatory Commission (CSRC) granted the bank the approval to become the majority shareholder in April.
Credit Suisse promised to continue to invest in China and named Janice Hu as chairwoman of CSFS to help drive the bank’s China onshore strategy and CSFS’s future business plans.
Hu is currently vice-chairwoman for China at Credit Suisse and a board member of CSFS. She has been with Credit Suisse for almost two decades.
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Hong Kong is no longer autonomous from China, US determines
Following intense lobbying from foreign banks, China said it would raise its cap on foreign ownership limits to 51 per cent in April 2018. The ruling allows foreign banks to compete more effectively onshore and to integrate their mainland business with their global operations.
The approvals followed the Office of Financial Stability and Development Committee and the State Administration of Foreign Exchange announcement last July that they would ease rules and further open up China’s financial sector a year earlier than planned.