UBS first foreign bank to take control of China business

UBS_branchSwiss giant UBS AG has edged out its competitors to become the first foreign bank to secure a majority stake in its mainland securities joint venture. It increased its shareholding in UBS Securities Co to 51% from 24.99% after the China Securities Regulatory Commission (CSRC) granted approval. The move comes after Beijing changed its rules to further open up its economy earlier this year, before which foreign firms were only allowed to hold 49% of their Chinese securities business. UBS chief executive Sergio Ermotti said: “The further opening up of China's financial sector represents great opportunities for our wealth management, investment bank and asset management businesses.” The Swiss firm was the first foreign bank to apply to increase its shareholding in a China venture after CSRC issued its policy in April 2018. Kathy Shih, president of UBS Asia Pacific, said: “This is a key milestone and an important part of our China strategy.” Rivals including Japan’s Nomura Holdings and the US’ largest bank by assets, JP Morgan Chase, are still awaiting approval for a 51% stake in their onshore securities ventures from Chinese regulators. ©2018 funds global asia

Executive Interviews

Interview: Money needs a place to go

Mar 11, 2019

Peng Fei, chief investment officer at Wanwei Asset Management, tells Romil Patel about allocating capital across risk factors when asset performance is uncertain and unpredictable.

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...


Singapore roundtable: A money magnet

Mar 11, 2019

Our panel discussed why the Singapore Variable Capital Company makes them bullish, what gives the onshore jurisdiction an offshore feel and “blood on the streets” from China’s slowdown. Chaired by Romil Patel in Singapore.


Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.