(Yicai) March 13 -- Beijing State-Owned Assets Management has received regulatory approval to acquire 85 percent of Credit Suisse Securities China, the joint venture brokerage between UBS Group and Founder Securities.

The China Securities Regulatory Commission has given permission to UBS to sell a 36 percent stake in CSS to BSAM, the Swiss banking giant said in a statement sent to the media yesterday. After the deal is completed, UBS will still own 15 percent of the JV.

On the same day, Founder Securities told the media that the Chinese financial services provider had received approval from the CSRC to sell its entire 49 percent stake in CSS to BSAM.

Last June, UBS, Founder Securities, and BSAM reached an agreement for the two shareholders of CSS to sell a combined 85 percent stake to the Beijing government-owned assets manager in return for USD91.4 million and USD124 million, respectively.

UBS will continue to invest in China, strengthen its leading position in investment banking, and expand its wealth management and asset management businesses, said Janice Hu, president of UBS China.

This transaction further enhances UBS’ strategic layout in the Chinese market, said Iqbal Khan, co-president of global wealth management and Asia-Pacific head at UBS.

Beijing-based CSS was set up in 2008 by Credit Suisse Group and Founder Securities, with the former owning 51 percent and the latter the rest after a series of capital increases.

Credit Suisse was integrated into UBS in June 2023 before the pair merged on last May. UBS needed to sell a stake in CSS as the merger led to it having two majority-owned brokerages in China, while regulations only allow a firm to control one.

Hu, who was the chairman of CSS, joined UBS Securities as vice chairman last July. A few months later, she replaced Qian Yujun as president of UBS China after he stepped down.

Editor: Futura Costaglione