Credit Suisse obtains regulatory approval to become majority shareholder in its China securities JV

Maria Nikolova

Credit Suisse’s shareholding in CSFS is set to increase from 33.3% to 51%.

Credit Suisse today announces that it has received approval from the China Securities Regulatory Commission (CSRC) to become a majority shareholder in its securities joint venture, Credit Suisse Founder Securities Limited (CSFS).

Credit Suisse will work closely with Founder Securities Co. Ltd. (Founder Securities) to make the necessary arrangements to complete the planned capital injection and related procedures. This injection will see Credit Suisse’s shareholding in CSFS increase from 33.3% to 51%.

Established in 2008 and headquartered in Beijing, CSFS provides a raft of capital markets services to clients in the domestic China market, including sponsoring and underwriting A-shares, foreign investment shares and government and corporate bonds, as well as providing financial advisory services. Since October 2016, it has also operated a securities brokerage business in Shenzhen Qianhai and has continued to expand its trading and execution capabilities.

Welcoming the CSRC’s approval, Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, said: “This is a significant milestone in our China strategy that complements our franchise globally as well as in Asia Pacific. As a leading global wealth manager with strong investment banking capabilities, one of our long-term goals is to make a meaningful contribution to the development of China’s financial markets as the country continues to open up its domestic financial market.”

Helman Sitohang, Asia Pacific CEO of Credit Suisse, added: “Credit Suisse has a long-term commitment to China. 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.”

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