Credit Suisse has obtained the regulatory approval to pick a majority stake in its China securities joint venture (JV).
The clearance from the China Securities Regulatory Commission (CSRC) raises the Swiss bank’s holding in Credit Suisse Founder Securities (CSFS) to 51% from 33.3%.
CSFS supports sponsoring and underwriting of A-shares, foreign investment shares and government and corporate bonds. It also offers financial advisory services.
The JV was set up in 2008 and based in Beijing.
Credit Suisse Asia Pacific CEO Helman Sitohang highlighted the firm’s long-term commitment to China.
Sitohang stated: “We believe the securities entity will enable us to develop our onshore capabilities.
“We intend to continue to invest in this important market to bring our integrated capabilities and our comprehensive range of financial products and services to both domestic and international clients in China.”
Credit Suisse launched a representative office in Beijing in 1985, becoming the first Swiss bank to do so. It later set up its Shanghai Bank Branch.
The Swiss bank also has an asset management JV in China. Operating as ICBC Credit Suisse Asset Management, the JV managed around CHF180bn in assets at the end of December 2019.
Credit Suisse is the latest bank to get controlling ownership of China JV after the country liberalised financial sector rules to boost competition.
In 2018, its rival UBS became the first foreign bank to get approval for a controlling interest in its China JV.
Credit Suisse Group CEO Thomas Gottstein called the recent regulatory nod a “significant milestone” in its China strategy.