China allows UBS to take controlling stake in local securities firm
- Swiss giant is first foreign bank approved to do so since Beijing relaxed rules on financial industry in move to open up economy
UBS has been authorised by China’s securities regulator to take a controlling stake in a local business, making the Swiss giant the first foreign bank allowed to do so under new rules.
Beijing in April relaxed the rules in the financial industry in a move to open up the economy.
“The China Securities Regulatory Commission (CSRC) recently approved UBS AG to increase the shareholding ratio of UBS Securities Co Ltd to 51 per cent,” the regulator said in a statement late on Friday.
“This is the first foreign-controlled securities company approved by the China Securities Regulatory Commission after the implementation of the Measures for the Administration of Foreign-invested Securities Companies.”
USB AG, which currently owns about 25 per cent of shares in the USB Securities Co joint venture, said in a statement that it would acquire stakes from China Guodian Capital Holdings and COFCO.
Other financial firms like Wall Street titan JPMorgan Chase and Japan’s Nomura Holdings are still awaiting approval.