(Yicai Global) April 18 -- Credit Suisse Group has received the green light from the Chinese securities regulator to become the majority shareholder of its local securities joint venture to take advantage of China's widening market access.

Credit Suisse will work with its Chinese partner Founder Securities to boost its shareholding of Beijing-based Credit Suisse Founder Securities to 51 percent from 33.3 percent, the Zurich-headquartered wealth manager said in a press release yesterday.

China eased its foreign shareholding limits on local brokerages in 2018, and the Swiss investment bank was among the earliest foreign firms to reveal an intention to gain a majority stake in its China JV. 

Credit Suisse will pour CNY628.47 million (USD88.9 million) into CSFS, according to the Changsha-based firm's statement released earlier. As part of the deal, the JV's registered capital will increase to CNY1.1 billion from CNY800 million (to USD154.1 million).

“This is a significant milestone in our China strategy that complements our franchise globally as well as in Asia Pacific," said Chief Executive Thomas Gottstein in yesterday's press release. "One of our long-term goals is to make a meaningful contribution to the development of China’s financial markets as the country continues to open up its domestic financial market.”

Established in 2008, CSFS provides underwriting and financial advisory services to clients in China with its total assets of CNY928.6 million as of at the end of 2018, according to its annual report.

Editor: Emmi Laine