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Credit Suisse wins underwriting JV approval

Credit Suisse has won approval from the securities regulator to create a joint venture with Founder Securities, the Wall Street Journal reported. This is the first approved deal since new regulations were implemented last December for joint ventures involving foreign firms. Credit Suisse can now underwrite share and bond issues in China’s capital markets. The new entity will be one-third owned by Credit Suisse, with Founder owning the rest. The deal still requires approval from two more government departments, but gaining permission from the securities regulator is thought to be the most important step. New rules last December limited foreign investment banks to a one-third stake in any new local underwriting joint ventures.

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