The joint venture between the Swiss major bank and the Chinese company Founder Securities, Credit Suisse Securities (CSS), will be sold to Beijing State-owned Assets Management (BSAM). UBS will retain a minority stake.

UBS is reducing its stake in CSS by selling 36,01 procent of its shares, lowering its holding from 51 procent to 14,99 procent. The purchase price is $91,4 million dollar, as announced by the major bank.

Founder Securities is selling its entire 49 procent stake to BSAM, with the price being $124 million dollar. Thus, the Chinese state fund will hold a total of 85,01 procent of CSS shares.

2008 Founded Joint Venture

CSS was founded in 2008 as a joint venture between Credit Suisse and the Chinese financial services provider Founder Securities. Since June 2020, CS held a 51 procent stake, while Founder Securities held the remainder.

In the fall of 2022, CS had planned to buy out its partner and fully take over CSS. However, this transaction did not occur before UBS's emergency takeover of CS in March 2023.

Regulatory Requirements

Due to the merger, there were two UBS entities in China with a securities business license, which posed a regulatory problem. According to media reports, the US company Citadel Securities, owned by Ken Griffin, was also interested in CSS to establish a foothold in China.

China is a key market for UBS, emphasizes CEO Sergio Ermotti in the statement. «We have been present in China for 35 years and will continue to expand in this important market.» The acquisition of CS has increased its presence in the country. However, certain regulatory requirements must be met.