Dec 03, 2018 (China Knowledge) - The China Securities Regulatory Commission (CSRC) has approved UBS Group to take a majority stake in its Chinese securities joint venture (JV), making it the first foreign bank to do so following the new rules announced by Beijing, last year.
The group currently owns 24.99% of the UBS Securities Co. JV will increase its stake in the joint venture to 51%. The new majority stake will allow UBS to further expand its business in China.
Previously, the lack of control had prevented foreign companies from expanding their businesses in China due to the difficulty in integrating their mainland operations with their global ones. The lifting of ownership rules in China have been long sought after by foreign investment banks.
UBS Securities Co. which currently focuses on debt and equity underwriting as well as financial advisory, will be looking to delve into wealth management, investment banking and asset management.
JPMorgan Chase and Nomura Holdings have also applied to set-up majority-owned joint ventures in China. The two companies do not have a mainland joint venture currently and will be starting their operations in China from scratch.
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