Goldman Sachs is nearing closer to becoming the first foreign bank to gain full ownership of its mainland China securities joint venture.
The American banking giant has signed an agreement to buy out its China joint venture partner, according to a «Reuters» report citing an internal memo, and the process to increase ownership has also been initiated with regulators. It currently owns a 51 percent stake in the Goldman Sachs Gao Hua (GSGH) venture.
«One hundred percent ownership of our franchise on the mainland represents a significant commitment to and investment in China, outlined in our China strategic plan,» the bank said.
In January this year, Goldman was reportedly forming a strategy for its mainland ambitions including plans to double its headcount there to 600 by 2025.
Nearly First-Mover
Should Goldman succeed soon, it could be the first foreign bank to have a wholly-owned Chinese securities unit.
By current ownership, J.P. Morgan is reportedly the leader with a 71 percent ownership of its joint venture after adding an additional 20 percent last month.
Swiss banking giants UBS and Credit Suisse have also both voiced ambitions for full ownership and currently hold a majority stake of 51 percent.
