Adds context, foreign companies
HONG KONG, March 18 (Reuters) – UBS Group AG UBSG.S increased its stake in a Chinese securities joint venture to 67% from 51%, the Swiss bank said on Friday, as it seeks to strengthen its presence in the world’s second-largest economy.
UBS acquired 14.01% and 1.99% stakes in the company from Guangdong Provincial Communications Group and China Energy Capital Holdings, respectively, the bank said, without disclosing the price of the stock purchases.
The joint venture, UBS Securities Ltd, was established 15 years ago and in 2018 UBS became the first foreign financial company to hold a majority stake in such a unit as China removed the 49% foreign ownership cap. in 2017.
Rival Credit Suisse CSGN.S increased its stake in its securities joint venture in 2020 to 51%, while JPMorgan JPM.N and Goldman Sachs GS.N converted their brokerage businesses into wholly owned subsidiaries last year.
HSBC HSBA.L is also considering buying out its mainland securities joint venture partner, Reuters reported in January.
(Reporting by Selena Li; Editing by Anshuman Daga, Jason Neely and Alex Richardson)
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