American private equity major Warburg Pincus is reportedly seeking to set up a securities joint venture in China.
The firm has applied for a brokerage joint venture with the China Securities Regulatory Commission (CSRC) last week, Reuters reported.
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The details regarding an intended Chinese partner or shareholder structure of the venture are not known. Warburg Pincus declined to comment on the report.
The opening up of the securities sector by China has lured a slew of foreign investment giants including UBS, Morgan Stanley, and Goldman Sachs to the country.
These companies are eying to bulk up their holdings in Chinese ventures towards full control.
Last October, British bank Standard Chartered submitted an application for a brokerage licence with the CSRC.
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By GlobalDataIn September last year, it was reported that JPMorgan is looking to increase its holding in its Chinese securities joint venture to 71%.
The same month, the CSRC granted approval for Singapore-based DBS Group to set up a joint venture securities company.
In February this year, British fund manager Schroders reportedly secured the clearance to launch a majority-owned wealth management JV with a unit of Chinese lender Bank of Communications (BOCOM).
Warburg Pincus is an investor in China’s Ant Group, which is led by Alibaba founder Jack Ma.
Other moves by Warburg Pincus
Last month, Warburg Pincus acquired a minority stake in the investment management firm Edelman Financial Engines.
Last May, the American private equity firm raised its holding in Singaporean real estate fund manager ARA Asset Management to 48.7%.
In 2019, Warburg agreed to acquire a majority stake in Texas-based broker-dealer Kestra Financial from Stone Point Capital.
