Swiss bank Credit Suisse has agreed with Founder Securities to increase its shareholding to a majority stake in its Beijing-based Credit Suisse Founder Securities (CSFS) joint venture.
As a result of the agreement, Credit Suisse’s shareholding is expected to increase from 33.3% to 51% by way of capital injection. The shareholding of Founder Securities in CSFS will reduce to 49%.
The completion of this transaction remains subject to regulatory approvals.
Last December, Switzerland’s largest bank, UBS, became the first foreign bank to hold a majority stake in a China securities joint venture. UBS, which owned 24.99% of the UBS Securities Co joint venture, had applied in May 2018 to the China Securities Regulatory Commission to raise its stake to 51%.
Established in 2008 and headquartered in Beijing, CSFS focuses on providing a range of capital markets services to clients in the domestic China market, including sponsoring and underwriting A-sharesexternal link, foreign investment shares and government and corporate bonds as well as providing financial advisory services.
Credit Suisse also has an asset management joint venture – ICBC Credit Suisse Asset Management – which is among the largest in China, with total assets under management of nearly RMB1.3 trillion (CHF194 billion, $194 billion) as of the end of December 2018.