Banking: UBS wants to completely take over UBS Securities in China

The UBS banking group wants to fully take over its joint venture dedicated to securities in China. The process to increase the stake in UBS Securities to 100% is underway, the establishment told the AWP news agency on Tuesday, confirming information reported by Reuters.

Joint venture partner Beijing State-owned Assets Management (BSAM) wants to auction off its 33% stake, while UBS currently owns the remaining 67%, the major bank specifies.

Last April, the Bloomberg agency indicated that UBS was aiming for an exchange with the Chinese government as part of the clean-up of its activities in China after the takeover of Credit Suisse. In return for the 33% to be acquired, the number one Swiss bank would sell its 51% share in CS Securities to a Chinese public company.

At the end of June, UBS more or less withdrew from the securitization activities of the late Credit Suisse in China. The big bank certainly did not sell its entire 51% share, but a share of around 36% in CS Securities to Beijing State-owned Assets Management (BSAM). UBS therefore only owns around 15% of this joint venture.

CS Securities was founded in 2008 by Credit Suisse and Chinese financial services provider Founder Securities. As of June 2020, the Swiss bank had a 51% share. However, a foreign bank cannot hold two licenses at the same time in China for this type of activity.

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