Credit Suisse Aims to Own Entire China JV, Expand Mainland Business, New China CEO Says
Zhou Nan
DATE:  Jul 28 2021
/ SOURCE:  Yicai
Credit Suisse Aims to Own Entire China JV, Expand Mainland Business, New China CEO Says Credit Suisse Aims to Own Entire China JV, Expand Mainland Business, New China CEO Says

(Yicai Global) July 28 -- Credit Suisse Group is looking forward to taking full control of its China securities joint venture, according to Janice Hu, the new chief executive of its China operations.

The Swiss investment bank is planning to wholly own Credit Suisse Securities China to further expand its business in the Chinese mainland and deeply participate in the development of China’s financial market, Hu told reporters, including from Yicai Global, in an interview on July 26.

Credit Suisse became the majority shareholder in its China JV with a 51 percent stake in the middle of last year and renamed it from Credit Suisse Founder Securities this June. The Zurich-based bank wants to raise that to 100 percent, its Asia business head Helman Sitohang said last July.

Overseas financial giants, also including UBS, Goldman Sachs and J.P. Morgan Chase, have moved to take majority control and full ownership of their Chinese joint ventures since the country began easing foreign ownership limits in 2018 to further open up the financial sector.

“My work will focus on improving CSS’ business contracting capabilities, especially those of key business entrepreneurs and private firms’ customers,” said Hu, who became CEO earlier this month. “I will also be responsible for the communication and coordination between the company and regulatory agencies.”

Credit Suisse will enhance the financial services of existing investment banks while expanding its business scope to the wealth management field in order to broaden its business channels and create more opportunities, Hu said. To do so, the firm will continue to strengthen its talent pool and training capabilities, she added.

“CSS plans to expand the scope of the securities brokerage business to the whole country,” the joint venture’s CEO Tim Tu said. “The firm will also apply for new securities investment consulting and proprietary business licenses.”

CSS has recruited over 60 experts since last June, Tu said, adding that they expect foreign participation in the Chinese market to grow, so that they can bring more quality overseas investors to the country.

In addition, CSS will further promote cooperation between the Chinese business and industrial groups, product and executive teams in all regions where the group works, Hu said.

Editors: Tang Shihua, Futura Costaglione

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Keywords:   Business Strategies,Joint Venture,Credit Suisse