UBS said that the China Securities Regulatory Commission (CSRC) had approved its filing to become the sole shareholder of UBS Securities Co., Ltd, and it will acquire the 33% stake in UBS Securities held by Beijing State-owned Assets Management Co., Ltd., increasing its ownership from 67% to 100%.
UBS Securities was the first foreign-invested, full-license joint venture securities firm in China, launching operations in 2007. In November 2018, the CSRC approved UBS’s increase in ownership from 24.99% to 51%, and the acquisition was finalized the following month, making UBS Securities the first foreign-controlled securities firm in China.
In 2022, UBS further increased its stake to 67%. On November 25, 2024, the Beijing Equity Exchange announced that Beijing State-owned Assets Company planned to sell its remaining 33% stake in UBS Securities, with a listing price of about RMB 1.5365 billion.
Notably, following Credit Suisse’s integration into UBS Group in June 2023, UBS was required to comply with China’s “one institution, one control” policy, which prohibits a single institution from holding controlling stakes in two securities firms. To comply with this regulation, UBS has made progress in transferring its stake in Credit Suisse Securities (China) Limited. On March 12, UBS said that it had received CSRC approval to retain a 14.99% stake in Credit Suisse Securities while selling its remaining 36.01% stake to Beijing State-owned Assets Company. Once the transaction is completed, Beijing State-owned Assets Company will hold an 85.01% stake in Credit Suisse Securities, replacing UBS as its largest shareholder.
Sergio P. Ermotti, CEO of UBS Group, said that China is one of the world’s most important and fastest-growing markets. UBS has been deeply committed to serving clients in China, and we are proud of our long-standing presence … We will continue investing in China as a key pillar of our growth strategy and further strengthen our leadership in the Asia-Pacific region.”
Gaining full ownership of UBS Securities marks a significant milestone in our integrated strategy in the Asia-Pacific region, enabling us to further expand our investment banking and wealth management businesses in China, which not only allows us to seize the vast opportunities arising from China’s financial market opening but also enhances our ability to participate in China’s wealth creation, providing world-class products, services, and professional advice to our clients, said Iqbal Khan, President of UBS Asia-Pacific and Co-President of Global Wealth Management.
In recent years, China has deepened financial sector reforms and expanded market access, leading to increased foreign investment in the financial services industry.
In April 2018, the Regulations on Foreign-Invested Securities Companies were officially implemented, raising the maximum foreign ownership limit in securities firms to 51%. Since April 1, 2020, foreign ownership restrictions on securities firms has been completely removed. Qualified foreign investors could apply to establish or acquire controlling stakes in securities firms in accordance with relevant laws, regulations, and CSRC guidelines.
In January 2023, Standard Chartered Securities received approval to establish operations, becoming the first newly established wholly foreign-owned securities firm in China. Currently, there are 10 foreign-controlled securities firms in China, including UBS Securities, Morgan Stanley Securities (China), DBS Securities, Daiwa Securities (China), HSBC Qianhai Securities, Nomura Orient International Securities, BNP Paribas Securities, Goldman Sachs (China) Securities, and J.P. Morgan Securities (China). Among them, UBS Securities, J.P. Morgan, Goldman Sachs China, Standard Chartered Securities, and BNP Paribas Securities are fully foreign-owned.