CS - Credit Suisse reportedly seeks buyers for China brokerage business
2023-06-09 08:45:54 ET
Credit Suisse ( NYSE: CS ) and joint venture partner Founder Securities have put up their China securities brokerage for sale given the Swiss lender's rescue by rival UBS Group ( NYSE: UBS ), Reuters reported Friday, citing people with knowledge of the matter.
One company is not allowed to hold two licenses for majority-owned brokerages, as per Chinese securities rules. UBS ( UBS ), which is expected to finalize its tie-up with Credit Suisse ( CS ) as soon as Monday , already owns 67% of a securities business with Beijing State-owned Asset Management.
Credit Suisse ( CS ) has a 51% stake in Credit Suisse Securities China and was said to have reached a deal last year to acquire Founder's 59% stake, though Chinese regulatory approval has yet to be granted.
At one point, the article noted, Citigroup ( C ) was interested in buying loss-making Credit Suisse Securities China, which is also licensed to conduct underwriting, proprietary trading and sponsoring, as it looks to set up a securities brokerage in the country.
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Credit Suisse reportedly seeks buyers for China brokerage business