Credit Suisse has agreed to take majority control of Chinese securities venture Credit Suisse Founder Securities (CSFS), boosting its stake to 51 percent from 33.3 percent via a capital injection, Reuters reports.
Under the deal, the stake held by Credit Suisse’s partner Founder Securities will fall to 49 percent. Credit Suisse did not say how much capital it plans to inject should regulators approve the deal, the report said.
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 financial sector.
Swiss rival UBS Group 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 last month to set up majority-owned brokerage joint ventures.
The China Securities Regulatory Commission said at the time it will continue to approve foreign brokerage joint ventures “efficiently”.
Established in 2008 and headquartered in Beijing, CSFS provides capital markets services in the Chinese domestic market, including sponsoring and underwriting A-shares, foreign investment shares, and government and corporate bonds.
It also provides financial advisory services, according to the report.
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