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4th December 2018
UBS to take a majority 51% stake in China securities joint venture
UBS has received the approval from the China Securities Regulatory Commission (CSRC) for UBS AG to increase its shareholding in its securities joint venture in China, UBS Securities Co. Ltd (UBS Securities) from 24.99 per cent to 51 per cent. UBS is acquiring from China Guodian Capital Holdings and COFCO their 12.01 per cent and 14 per cent stakes in UBS Securities, respectively. Upon completing the transaction, UBS will become the first foreign bank to increase its stake to gain majority control of a securities joint venture in China.
Sergio P. Ermotti, UBS Group CEO, said: "Growing our China business is a 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. 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."
Eugene Qian, President of UBS Securities, said: "UBS Securities is the first fully licensed, foreign-invested securities firm in China. Thanks to support from the regulator and shareholders, we are pleased to achieve another 'first' in UBS's development in China. With majority control, we can better realise on the opportunities in China's capital markets and make a greater contribution to the UBS Group."
UBS was the first foreign bank to apply to raise its shareholding in a China venture after CSRC's policy issued in April 2018, allowing foreign companies to take up to 51 per cent stakes in securities firms in China. Following the completion of the transaction, the shareholders of UBS Securities and their respective shareholdings will be: UBS AG (51 per cent), Beijing Guoxiang Property Management Co., Ltd (33 per cent), Guangdong Provincial Communication Group Co., Ltd (14.01 per cent) and China Guodian Capital Holdings (1.99 per cent).