Deutsche Bank has received approval from the China Securities Regulatory Commission (CSRC) for a securities joint venture, Bloomberg reported. Deutsche Bank will hold a 33.3% stake – the limit for foreign securities firms – in Zhong De Securities, with joint venture partner Shanxi Securities holding 66.7%. The venture will allow Deutsche Bank to underwrite bond and stock sales in China, and will make it the sixth foreign investment bank to enter the domestic market. Last year, China raised requirements for foreign securities firms looking to set up joint ventures in China.
For more on the resumption of foreign investment in China’s brokerage sector, read this report from the August issue of CER.