Credit Suisse will increase its stake in its China securities joint venture (JV) to 51%, having reached an agreement with Founder Securities, making it the latest foreign bank to take a majority holding in its China JV.
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%.
Beijing requires that international firms wanting to do financial services business in the country to do so in partnership with a Chinese company. The goverment as since relaxed ownership rules by allowing foreing firms to increase holdings in their JVs to a maximum of 51%.
Credit Suisse has a long-term commitment to China, having had a presence in the country for more than 30 years"
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.
"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 is following the lead of fellow Swiss banking giant UBS, which grew its stake in its own China securities JV to 51% in December.