UBS to take control of Beijing Securities

UBS has won regulatory approval to take a 20% stake in troubled brokerage Beijing Securities for US$212 million, the Financial Times reported, citing people close to the situation. It is the first high-profile deal involving a foreign group to be cleared by the China Securities Regulatory Commission in months. Despite only having a minority stake – the Beijing city government, three state companies and the World Bank's private sector arm share the remaining 80% – UBS has been granted the right to control the management of the venture. The Swiss bank is the first overseas investment firm to buy directly into one of China's ailing brokerage firms.