UBS Takes Majority Stake In Chinese JV
UBS announced that it has received the approval from the China Securities Regulatory Commission (‘CSRC’) for UBS AG to increase its shareholding in its securities joint venture in China, UBS Securities Co. Ltd (“UBS Securities”) from 24.99% to 51%. UBS is acquiring from China Guodian Capital Holdings and COFCO their 12.01% and 14% stakes in UBS Securities respectively. Upon completing the transaction, UBS will become the first foreign bank to increase its stake to gain majority control of a securities joint venture in China.
Sergio P. Ermotti, UBS Group CEO, said, “Growing our China business is key element of our strategy. The further opening up of China’s financial sector represents great opportunities for our wealth management, investment bank and asset management businesses. Since establishing our onshore presence in 1989, we have been at the forefront of foreign investment in China. This step underlines our long-term commitment to this market and we will continue to pursue opportunities.”
Kathy Shih, President of UBS Asia Pacific, said, “This is a key milestone and an important part of our China strategy. Our close ties with UBS Securities, our investment banking arm in China, allow us to strengthen our collaboration with our operations across the region which is key to offering holistic solutions to our clients.”
Eugene Qian, President of UBS Securities, said, “UBS Securities is the first fully-licensed foreign-invested securities firm in China. Thanks to support from the regulator and shareholders, we are pleased to achieve another ‘first’ in UBS’s development in China. With majority control, we can better realize on the opportunities in China’s capital markets and make a greater contribution to the UBS Group.”
UBS was the first foreign bank to apply to raise its shareholding in a China venture after CSRC’s policy issued in April 2018, allowing foreign companies to take up to 51% stakes in securities firms in China. Following the completion of the transaction, the shareholders of UBS Securities and their respective shareholdings will be: UBS AG (51%), Beijing Guoxiang Property Management Co., Ltd (33%), Guangdong Provincial Communication Group Co., Ltd (14.01%) and China Guodian Capital Holdings (1.99%).
HSBC FX Everywhere has been used for payments across the bank's internal balance sheets.
Capitolis Novation automates manual workflow in FX prime broking.
Large banks are paying more than £100m per year to brokers.
Market will dwarf that of cryptocurrencies, fintech exec says.
Facebook and Google architectures are not the answer to the problems of trading, Adaptive writes.