Credit Suisse aims to take control of China securities venture

The Credit Suisse logo is seen at the headquarters in downtown Milan, Italy, March 9, 2016. REUTERS/Stefano Rellandini

Credit Suisse has agreed to take majority control of Chinese securities venture Credit Suisse Founder Securities Ltd (CSFS), boosting its stake to 51 percent from 33.3 percent via a capital injection, the Swiss bank said on Monday.

Under the deal, the stake held by Credit Suisse‘s partner Founder Securities Co Ltd will fall to 49 percent. Credit Suisse did not say how much capital it planned to inject should regulators approve the deal.

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 trillion-dollar 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 would continue to approve foreign brokerage joint ventures “efficiently”.

The biggest global investment banks, which struggled to build their China businesses under rules that previously limited them to 49 percent ownership, had long sought the lifting of such limits on joint ventures.

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, Credit Suisse said.

Since October 2016, the business has also operated a securities brokerage operation in Shenzhen Qianhai.

Credit Suisse has been present in China for more than 30 years. Its franchise includes equities, investment banking and capital markets, and private banking. It also has an asset management joint venture — ICBC Credit Suisse Asset Management Co Ltd — with total assets under management of nearly 1.3 trillion yuan ($193.78 billion) as of the end of 2018.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.