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在线翻译:
szdaily -> Markets -> 
UBS gets approval to control joint venture
    2018-12-03  08:53    Shenzhen Daily

CHINA’S securities regulator Friday gave approval for UBS Group to hold the majority stake in its securities joint venture, making it the first foreign bank to take such control under new rules announced by China’s government last year.

The Swiss bank, which currently owns 24.99 percent 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 percent. USB said that it would acquire stakes from China Guodian Capital Holdings and COFCO.

“This will be the first foreign-controlled brokerage approved by the securities regulator since the rules on foreign investment in brokerages were implemented,” the CSRC said on social media website Weibo late Friday.

“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,” UBS chief executive Sergio Ermotti said in a statement.

“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.”

The nod to raise its holding in UBS Securities potentially allows the Swiss bank to expand its business in the world’s second-largest economy. The venture’s existing operations include debt and equity underwriting and financial advisory.

The biggest global investment banks, which have struggled to build their China businesses under rules that previously limited them to 49 percent 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.

JPMorgan Chase and Japan’s Nomura Holdings have also applied to set up majority-controlled joint ventures. Unlike UBS, neither currently has a mainland joint venture and would need to start any such operation from scratch.

Last year, HSBC Holdings launched its own 51 percent-owned securities joint venture on the Chinese mainland, but the Asia-focused bank did so under rules allowing Hong Kong-based companies special access. (SD-Agencies)

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