UBS Seeks to Acquire UBS Securities in China
UBS, a banking group, is looking to acquire its joint venture dedicated to securities in China. The process to increase its stake in UBS Securities to 100% is currently underway, as confirmed by the institution to the press agency AWP.
The partner in this joint venture, Beijing State-owned Assets Management (BSAM), wants to auction off its 33% stake, while UBS currently holds the remaining 67%, the major bank explains.
In April, Bloomberg reported that UBS was aiming to negotiate with the Chinese government as part of its business restructuring in China following the acquisition of Credit Suisse. In exchange for the 33% stake to be acquired, the top Swiss bank would sell its 51% stake in CS Securities to a Chinese state-owned enterprise.
By the end of June, UBS had more or less withdrawn from the securitization activities of the former Credit Suisse in China. Although the bank did not sell its entire 51% stake, it sold about 36% of CS Securities to Beijing State-owned Assets Management (BSAM). As a result, UBS now only holds around 15% of this joint venture.
CS Securities was established in 2008 by Credit Suisse and the Chinese financial services provider Founder Securities. In June 2020, the Swiss bank held a 51% stake. However, a foreign bank cannot hold two licenses simultaneously in China for this type of activity.
