UBS Receives Approval for Restructuring in China
UBS has received approval to sell its stake in Credit Suisse Securities in China. However, it is still unclear whether this move will also pave the way for UBS to acquire UBS Securities.
As planned, UBS is reducing its stake in the Chinese securities joint venture, Credit Suisse Securities (CSS). The China Securities Regulatory Commission (CSRC) has approved the sale of a 36.01 percent stake to Beijing State-owned Assets Management (BSAM). This will reduce UBS's stake to 14.99 percent, as the bank announced in a statement on Wednesday.
Following the completion of the transaction, BSAM will hold 85.01 percent of CSS. CSS was founded in 2008, and since June 2020, Credit Suisse (CS) has held a 51 percent stake in the joint venture. Since June 2023, CS has been part of the UBS Group.
Strategic Goals
«This transaction helps optimize the strategic set-up of our onshore platforms in China and we are pleased to continue our collaboration with our 20-year business partner, BSAM,» said Iqbal Khan, co-head of global wealth management and head of APAC. «Asia Pacific is central to our strategic ambitions and China is an important market here.»
«This marks a milestone in the integration of UBS and CS in China,» said country head Janice Hu. «We will continue to invest in China and broaden our leadership position in the Investment Bank while expanding our Wealth Management and Asset Management businesses.»
The CS acquisition posed organizational challenges for UBS in China as it is also present in the country through a joint venture, UBS Securities. Chinese regulations prohibit a bank from holding two licenses in the country. BSAM is also a partner in UBS Securities, holding a 33 percent stake. According to media reports from last November, this stake is up for sale. UBS had previously made it clear that it intended to take full control of the broker and buy out the minority stake held by its Chinese partner.
