Credit Suisse JV becomes first Sino-foreign firm to win China brokerage approval

An investor writes on papers as he sits in front of an electronic board showing stock information at a brokerage house. REUTERS/Stringer

Credit Suisse Group AG said on Thursday that it’s investment banking joint venture in China has won approval to provide securities brokerage services, in a further sign of China’s gradual warming to foreign players in its securities industry.

The joint venture, Credit Suisse Founder Securities Ltd, is the first Sino-foreign firm to get approval to buy and sell shares on behalf of clients since China rewrote the rules for foreign participation in its securities industry in 2007.

It comes at a time when trading in China’s volatile stock markets is providing strong returns to local brokers.

The venture will be limited to providing brokerage in the country’s Shenzhen Qianhai development zone in the southern province of Guangdong, where HSBC earlier this month announced it would launch its own investment banking partnership.

Foreign securities joint ventures in China mostly operate under restricted licences that limited them to underwriting equity offerings, rather than the potentially more lucrative business of buying and selling shares on behalf of clients.

Goldman Sachs and UBS were the first foreign investment banks to set up in China in 2004 and 2006, respectively before the country altered the rules on such joint ventures to limit foreign ownership to 33 percent and narrow their business scope.

Credit Suisse said its joint venture is in the final stages of setting up its trading outlet in Qianhai, and is expected to start securities brokerage services early next year.

Also Read: Singapore gov investment arm among first to enter Chinese interbank FX market

Reuters

Singapore Reporter/s

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

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  • 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. 
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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.