Credit Suisse to lift stake in joint venture in China
China now allows foreign banks to hold controlling stakes in securities joint ventures as a major part of the country's pledge to ease ownership curbs
Zurich — Credit Suisse has agreed to take majority control of Chinese securities venture Credit Suisse Founder Securities (CSFS), boosting its stake to 51% from 33.3% via a capital injection, the Swiss bank said on Monday. Under the deal, the stake held by Credit Suisse's partner, Founder Securities, will fall to 49%. Credit Suisse did not say how much capital it planned to inject should regulators approve the deal. China now allows foreign banks to hold controlling stakes in securities joint ventures as a major part of the country's pledge to ease ownership curbs, especially in the trillion-dollar financial sector. Swiss rival UBS became the first foreign bank to hold a majority stake in a Chinese securities venture when China's securities regulator gave the go-ahead in November under new rules announced by Beijing in 2017. JP Morgan and Nomura also won Chinese regulatory approval in March to set up majority-owned brokerage joint ventures.
The China Securities Regulatory Comm...
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