UBS Seeks Full Ownership of China Onshore Securities Firm by 2020
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UBS continues to act as a pioneering foreign bank in mainland China taking full advantage of the accelerated timeline for foreign ownership cap removals by seeking full control of its securities joint venture by 2020.
The accelerated removal of the ownership caps for securities companies means that UBS is expected to be permitted to increase its stake in UBS Securities China from the current level of 51 percent to 100 percent by 2020, the bank said during its quarterly result announcement this week. The exact effective date remains to be clarified.
In July, Chinese authorities announced the removal of foreign ownership limits for securities, insurance and fund management companies next year, introduced a year earlier than planned.
Others have also been actively taking advantage of Chinese liberalization including Citi which is reportedly setting up a wholly-owned onshore securities business.
Questions & Answers
Q.What is UBS seeking to achieve in China regarding its securities business?
What is UBS seeking to achieve in China regarding its securities business?
UBS is seeking to gain full control of its securities joint venture in mainland China, aiming to increase its stake in UBS Securities China from 51 percent to 100 percent by 2020. This allows it to take advantage of the removal of foreign ownership caps.
Q.Are other foreign firms also capitalising on China's liberalisation of its financial sector?
Are other foreign firms also capitalising on China's liberalisation of its financial sector?
Yes, other foreign firms are also taking advantage of China's liberalisation. For example, Citi is reportedly in the process of setting up its own wholly-owned onshore securities business in the country.
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