Credit Suisse intends to increase its shareholding in its China securities joint venture (JV), having reached an agreement with Founder Securities Co. Ltd, subject to regulatory approval.
The Swiss investment bank stake in Credit Suisse Founder Securities Limited (CSFS) is expected to increase from a third to just over half by way of capital injection.
Founder Securities’s stake in CSFS will shrink to 49%.
CSFS was established in 2008 to focus on servicing clients in the domestic China market, including underwriting A-shares, foreign investment shares, and government and corporate bonds.
CSFS is headquartered in Beijing and also operates a securities brokerage business in Shenzhen Qianhui since 2016.
“Credit Suisse has a long-term commitment to China, having had a presence in the country for more than 30 years,” a statement from the bank has said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“During that time, Credit Suisse has established a strong Greater China franchise, with a market leading franchise across equities, investment banking & capital markets and private banking.”
Credit Suisse are following the lead of fellow Swiss banking giant UBS, which grew its stake in its own China securities JV to 51% in December.
This trend owes itself to an end to rules by Beijing dictating that global investments banks could own no more than 49% of joint ventures in China.
HSBC are another bank to have recently taken advantage of this.