UBS gets approval for Beijing Securities deal
(sznews.com)
Updated: 2006-06-22 13:40 UBS has received approval from Chinese regulators
to set up a brokerage business in China via an investment in a local firm.
The nod will give the Swiss bank access to China's burgeoning financial
services sector.
"UBS confirms the China Securities Regulatory Commission has issued
preparatory approval for the restructuring of Beijing Securities," a spokesman
said Tuesday.
The approval marks a key step toward UBS becoming the first foreign
investment firm to buy directly into a Chinese brokerage. UBS unveiled plans
last September to take a 20 percent stake in Beijing Securities.
Major investment banks are scrambling to get a foothold in China to take
advantage of the country’s fast-growing and potentially lucrative financial
sector.
Goldman Sachs was involved in the launch of Beijing Gao Hua Securities late
2004.
Other foreign firms seeking investment in domestic brokerages include Merrill
Lynch JP Morgan Chase, Morgan Stanley, HSBC Holdings, Credit Suisse and
Citigroup, industry sources have said.
Last September, UBS said it expected to invest 1.7 billion yuan (US$212.3
million) to take a 20 percent stake in Beijing Securities, a domestic brokerage
which has the necessary licenses to operate a range of businesses that could
include domestic debt and equity underwriting in China.
A group of Chinese domestic investors will also hold stakes in brokerage as
part of a restructuring.
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