Switzerland’s largest bank, UBS, has become the first foreign bank to hold a majority stake in a China securities joint venture, after gaining approval from country’s securities regulator.
On Friday, the China Securities Regulatory Commission gave approval for UBS AG to hold the majority stake in its securities joint venture. The Swiss bank, which currently owns 24.99% of the UBS Securities Co joint venture, had applied in May this year to the China Securities Regulatory Commission (CSRC) to raise its stake to 51%. UBS is acquiring from China Guodian Capital Holdings and COFCO their 12.01% and 14% stakes in UBS Securities, respectively.
This makes it the first foreign bank to secure such control under new rules announced by Beijing last year.
UBS Chief Executive Sergio Ermotti said in a statementExternal link: “Growing our China business is key element of our strategy. The further opening up of China’s financial sector represents great opportunities for our wealth management, investment bank and asset management businesses.”
“Since establishing our onshore presence in 1989, we have been at the forefront of foreign investment in China. This step underlines our long-term commitment to this market and we will continue to pursue opportunities.”
This move should allow UBS to expand its business in the world’s second-largest economy. The venture’s existing operations include debt and equity underwriting and financial advisory.
This move is significant as China is traditionally restrictive on foreign firms owning its companies. The biggest global investment banks, which have struggled to build their China businesses under rules that previously limited them to 49% ownership, have long sought the lifting of such limits on joint ventures. Lack of control over joint venture operations in China’s potentially lucrative securities market resulted in difficulties in integrating mainland ventures with global operations.
More
More
Swiss minister keeps eye on Chinese company takeover policy
This content was published on
But Schneider-Ammann is more optimistic than other ministerial colleagues that the situation will improve. Last month, Communications Minister Doris Leuthard told the Aargauer Zeitung newspaper that Switzerland should insist on reciprocity, pointing to a tough line taken on the issue in Germany. “We must do what Germany did many years ago, which is hold a…
In Switzerland more people are being referred to electrical therapies or psychedelic-assisted psychotherapy. Are there similar approaches where you live?
Living longer: What do you think about the longevity trend?
The longevity market is booming thanks in part to advances in the science of ageing. What do you think of the idea of significantly extending human lifespan?
SWISS cancels flight to Tel Aviv following missile attack near Ben Gurion airport
This content was published on
After a missile landed near Tel Aviv’s Ben-Gurion Airport, Swiss International Airlines (SWISS) cancelled its flight from Zurich to Tel Aviv on Sunday.
Swiss foreign minister rejects mandatory referendum for EU deals
This content was published on
Swiss Foreign Minister Ignazio Cassis defended the government’s decision to make EU deals subject to an optional rather than a mandatory referendum.
Pro-choice and anti-abortion activists face off in Geneva
This content was published on
Anti-abortion Christian groups held a silent prayer in front of the Geneva train station on Saturday, to the whistles and shouts of pro-choice demonstrators.
Swiss army soldier seriously injured in accident on Simplon Pass
This content was published on
A member of the Swiss army was seriously injured on Friday while manoeuvring a self-propelled howitzer on the Simplon Pass.
Basel attempts world‘s largest over-60s disco before Eurovision Song Contest
This content was published on
It was billed as a world record attempt for the biggest over-60s disco of all time. But most visitors came to Basel to have fun.
Basel prepares 700 volunteers for the Eurovision Song Contest
This content was published on
Around 320 people took part in one of the two official information events for the Eurovision Song Contest (ESC) in Basel on Friday.
More Swiss soldiers involved in accidents during training in Austria
This content was published on
The Swiss army has reported various accidents involving Swiss soldiers during the exercise “TRIAS 25” in Austria. Some have led to hospitalisations.
Swiss court rules vegan meat substitutes can’t use animal names
This content was published on
Vegan meat substitutes may not bear animal names such as “planted.chicken” according to a ruling by the Swiss Federal Supreme Court.
Swiss minister keeps eye on Chinese company takeover policy
This content was published on
But Schneider-Ammann is more optimistic than other ministerial colleagues that the situation will improve. Last month, Communications Minister Doris Leuthard told the Aargauer Zeitung newspaper that Switzerland should insist on reciprocity, pointing to a tough line taken on the issue in Germany. “We must do what Germany did many years ago, which is hold a…
Minister warns of ‘strategic’ Chinese takeovers of Swiss firms
This content was published on
Swiss Communications Minister Doris Leuthard has expressed concern about potential acquisitions by Chinese firms of Swiss companies.
Why more Chinese companies will come to Switzerland
This content was published on
Switzerland can expect to see a lot more companies coming over from China in the coming years, according to Liu Jiren, CEO of Neusoft.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.