UBS secures majority stake in a China securities joint venture
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…
Swiss money laundering office registers record number of reports
This content was published on
The Money Laundering Reporting Office Switzerland (MROS) registered a record number of reports of suspicious activity last year.
Two teens accused of planning terror attack released from custody
This content was published on
The Schaffhausen judiciary has released the two teenagers from custody who allegedly planned bomb attacks in Switzerland.
OECD: Sluggish economic activity slowing growth in Switzerland
This content was published on
Sluggish economic activity at the start of the year is weighing on growth in Switzerland, with GDP expected to fall to 1.1% in 2024.
Report finds mistakes which led to Swiss government data breach
This content was published on
Mistakes were made by both the government and internet company Xplain in the case of a criminal cyber-attack on the Bern-based IT business.
Swiss government wants better gender balance in federal administration
This content was published on
New Swiss government personnel management targets say there must be even more female managers in the federal administration.
Swiss national science foundation funded over 5,000 projects in 2023
This content was published on
In 2023, the Swiss National Science Foundation (SNSF) provided a total of CHF961 million worth of funding towards research projects.
Switzerland invites 160 delegations to June Ukraine peace talks
This content was published on
Russia is currently not among the delegations invited to talks aimed at helping bring about peace in the conflict between Moscow and Ukraine.
Survey: air travel most popular way to go on holidays for Swiss
This content was published on
Despite the climate crisis, flying is the most popular mode of transport for private travel – particularly among young, urban and high-income travellers.
Swiss government to use phone data to identify asylum seekers
This content was published on
From April 2025, authorities plan to be able to analyse data from mobile phones, computers and other data carriers to identify asylum seekers.
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.