Credit Suisse to take controlling stake in Chinese securities joint venture
- The Swiss bank would own 51 per cent of Credit Suisse Founder Securities after a capital injection
- The transaction is subject to regulatory approval
Credit Suisse said on Monday that its plans to take a controlling stake in its securities joint venture in China, the latest overseas firm to take advantage of Beijing’s efforts to further open the country’s financial services industry.
China announced in 2017 that it would allow foreign banks to own majority stakes in their securities joint ventures as part of an effort to open up its banking sector. UBS was the first foreign bank to receive approval from regulators in November to increase its joint venture stake to 51 per cent under the new rules.
On Monday, Credit Suisse said that it had reached an agreement with its Chinese partner, Founder Securities, to increase its stake in the joint venture from 33.3 per cent to 51 per cent by injecting capital into the venture. The completion of this transaction is subject to regulatory approvals.
“Credit Suisse will continue to work closely with Founder Securities and the respective regulatory authorities in this regard,” the bank said in a statement
In a filing to the Shanghai Stock Exchange on Monday, Founder Securities said that the Swiss bank would inject 628.7 million yuan (US$93.7 million) into the joint venture as part of the transaction.