Swiss bank UBS is in talks with its joint venture partner in China to increase its stake in Chinese investment bank and brokerage firm UBS Securities.
Speaking on the sidelines of the UBS conference in Shanghai, UBS Chairman Axel A. Weber admitted that talks were ongoing for UBS to increase its stake in its Chinese securities joint venture to 49 percent from its current level of about 25 percent.
Weber emphasised UBS' aim to be build a longterm business in China and praised the efforts of China's leaders to open the country up, citing its controlled and steady process of financial liberalisation.
Switzerland Moves Closer to China
With China currently the largest growing wealth market and UBS the largest wealth manager, Weber sees that as a good fit. He also stressed the commitment of the Swiss bank to continue to grow the investment bank and brokerage business divisions in China.
Last year Credit Suisse Founder Securities (CSFS) the Beijing based joint venture established by Founder Securities and Credit Suisse in 2008 announced the launch of their onshore brokerage and the offering of a full suite of services.
Joint venture operations in China by foreign banks have not always worked out as intended with many ending in litigation or parties walking away from each other. Credit Suisse owns 33.3 percent of the joint venture, with the remainder held by Founder Securities.
