Credit Suisse has secured approval from the China Securities Regulatory Commission (CSRC) to become a majority shareholder in Credit Suisse Founder Securities (CSFS), a Chinese securities company.
Established in 2008, Credit Suisse Founder Securities is a joint venture (JV) between the Swiss investment banking company and Founder Securities, a Chinese securities brokerage company.
Around last year, the Swiss bank signed a deal with Founder Securities to increase its stake in the securities joint venture from 33.3% to 51% through capital injection. The deal will see Founder Securities reduce its stake in the joint venture to 49%.
Credit Suisse said that acquiring a majority stake in the securities joint venture represents a major milestone in its China strategy.
The Swiss bank said that it will closely work with Founder Securities to make the required arrangements to wrap up the planned capital injection and associated procedures.
Credit Suisse CEO comments on the majority stake in the Chinese securities JV
Credit Suisse Group CEO Thomas Gottstein 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.”
Based in Beijing, Credit Suisse Founder Securities offers a variety of capital markets services to clients in the domestic Chinese market. The Chinese securities company is engaged in sponsoring and underwriting A-shares, foreign investment shares and government and corporate bonds, apart from offering financial advisory services.
Credit Suisse Founder Securities since October 2016 has also been operating a securities brokerage business in Shenzhen Qianhai and is said to have continued to have grown its trading and execution capabilities.
Credit Suisse Asia Pacific CEO Helman Sitohang said: “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.”
