UBS, the first fully licensed foreign-invested securities firm in China, said on Monday that it has become the first foreign bank to increase its stake to gain majority control of a securities joint venture in China.
The Switzerland-based bank company said in a note sent to the Global Times that UBS has earlier received the approval from the China Securities Regulatory Commission to increase its shareholding in its securities joint venture in China, and UBS Securities Co has increased its shareholding from 24.99 percent to 51 percent.
Eugene Qian, President of UBS Securities, said in a note that UBS will be able to better leverage its close ties with UBS Group's operations in the region, in order to further take advantage of the wide range of opportunities on offer in China's capital markets.
The current shareholders of UBS Securities and their respective shareholdings are divided among UBS AG (51 percent), Beijing Guoxiang Property Management Co (33 percent), Guangdong Provincial Communication Group Co (14.01 percent) and China Guodian Capital Holdings (1.99 percent).
China announced in April measures to raise foreign equity caps in the banking, securities and insurance industries, allowing foreign financial institutions to take control of domestic securities brokerages up to the 51-percent level.
