Credit Suisse intends to take controlling stake in its China securities joint venture
Credit Suisse has reached an agreement with Founder Securities Co. Ltd. (“Founder Securities”) to increase its shareholding in its Credit Suisse Founder Securities Limited (“CSFS”) joint venture, subject to regulatory approvals. This confirmation follows disclosure by Founder Securities to the Shanghai Stock Exchange earlier today.
As a result of the agreement, Credit Suisse’s shareholding is expected to increase from 33.3% to 51% by way of capital injection. The shareholding of Founder Securities in CSFS will reduce to 49% as a result.
The completion of this transaction remains subject to regulatory approvals. Credit Suisse will continue to work closely with Founder Securities and the respective regulatory authorities in this regard.
Established in 2008 and headquartered in Beijing, CSFS focuses on providing a range 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.
Credit Suisse has a long-term commitment to China, having had a presence in the country for more than 30 years.
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.
It also has an asset management joint venture - ICBC Credit Suisse Asset Management Co. Ltd. - which is now among the largest in China, with total assets under management of nearly RMB 1.3 trillion (CHF 194 billion), as of the end of December 2018.