Credit Suisse to take controlling stake in its Chinese joint venture

A bank window panel in Beijing displaying the security markers on the latest 100 Yuan notes in February Keystone

Swiss bank Credit Suisse has agreed with Founder Securities to increase its shareholding to a majority stake in its Beijing-based Credit Suisse Founder Securities (CSFS) joint venture. 

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%. 

The completion of this transaction remains subject to regulatory approvals. 

Last December, Switzerland’s largest bank, UBS, became the first foreign bank to hold a majority stake in a China securities joint venture. UBS, which owned 24.99% of the UBS Securities Co joint venture, had applied in May 2018 to the China Securities Regulatory Commission to raise its stake to 51%.

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-sharesExternal link, foreign investment shares and government and corporate bonds as well as providing financial advisory services. 

Credit Suisse also has an asset management joint venture – ICBC Credit Suisse Asset Management – which is among the largest in China, with total assets under management of nearly RMB1.3 trillion (CHF194 billion, $194 billion) as of the end of December 2018.