UBS gains brokerage ownership rights

UBS has become the first overseas securities firm to win the right to own a Chinese brokerage as soon as the law permits, state media reported. The bank, which will initially own 20% of the UBS Securities venture, has a written agreement that its five Chinese partners are willing to sell their stakes, asking not to be identified before an announcement by the nation's securities regulator. Gaining a bigger stake would help Zurich-based UBS control its expansion in China, where total market capitalization tripled in value in the past 12 months and more than US$20 billion of share sales are planned in 2007.