Credit Suisse has taken a majority stake in its Chinese securities joint venture, granting it control for the first time over its business with the troubled Founder Group conglomerate, reported the Financial Times.
Credit Suisse said on Monday that it had increased its shareholding in Credit Suisse Founder Securities from 33.3% to 51%, after receiving regulatory approval in April. The bank is injecting capital into CSFS, diluting Founder Securities’ stake.
The Swiss bank joins a handful of other financial institutions taking advantage of an expedited opening of China’s financial markets, after years of slow, frustrating developments.
By taking control of the business, Credit Suisse can chart out its own strategy and choose its own clients. In the domestic market for sponsoring and underwriting initial public offerings and corporate bonds, it will face stiff competition from Goldman Sachs and UBS, which have in practice controlled their JVs for more than a decade.