Ahead of its takeover by UBS, collapsed Credit Suisse has reportedly put its Chinese securities brokerage business up for sale.
According to sources cited by Reuters, Citigroup is one company that has shown interest in the Credit Suisse Securities China (CSS) unit. The bank’s chief exec Jane Fraser was in China this week, with the company in the process of setting up a securities brokerage in the country.
Credit Suisse needs to sell off the unit in order for UBS to comply with regulations in China which state that one entity cannot hold two licences for majority-owned brokerages. UBS already has a 67 per cent stake in Beijing State-owned Asset Management, a profitable securities venture.
Credit Suisse meanwhile owns 51 per cent of the loss-making CSS and had struck a deal to buy out its partner Founder Securities. The transaction has yet to receive regulatory approval. Credit Suisse had planned to set up a locally incorporated bank in China, but this has reportedly been scrapped due to potential regulatory conflicts concerning the deal with UBS.
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