Swiss Bank agrees to buy up its remaining stake in its CSS joint venture in China from Founders Securities.
Credit Suisse has agreed to take full ownership of its China-based Credit Suisse Securities (CSS) joint venture by purchasing the remaining 49 percent stake it doesn't own from Founders Securities, according to an ad hoc release (Chinese only) sent by the brokerage on Thursday.
«Reuters» (registration required) subsequently reported the price for the stake is about $160 million, with Credit Suisse's banker for Greater China Carsten Stoehr indicating to the news service that the deal is an important piece in the puzzle regionally.
Switzerland's second-largest bank had been reviewing its strategy for Asia in Singapore recently, with top executives believed to be making considerations as to whether it should shrink or expand its business in China. Purchasing the remaining stake now, however, will potentially allow the bank to start providing onshore wealth management services in China in the first quarter of 2023 after successfully completing the transaction and a full takeover of CSS' activities.
Management Fluctuation
That is good news for Credit Suisse, which has been largely confronted with numerous crises, departures, and legal issues for the past two years.
Moreover, there had been numerous reports that CSS had been experiencing high levels of departures by senior staff members as well as indications that the China Securities Regulatory Commission would wait until the executives were replaced before conducting any on-site inspections that would subsequently allow it to expand its business.
