The move is part of steps by banks, such as rival UBS, to gain more of a foothold into the mainland China financial and wealth management industry.

Credit Suisse has agreed to boost its stake in a Chinese joint venture, provided regulators give the move the green light.

The Zurich-listed bank said it has agreed with Founder Securities Co to boost its shareholding in its Credit Suisse Founder Securities Limited JV. Founder Securities had disclosed the matter earlier yesterday to the Shanghai Stock Exchange.

The Swiss bank’s JV shareholding will rise from 33.3 per cent to 51 per cent by way of capital injection. The shareholding of Founder Securities in CSFS will drop to 49 per cent.

The completion of this transaction remains subject to regulatory approvals, Credit Suisse said.

Set up in 2008 and based in Beijing, CSFS focuses on providing a range of capital markets services to clients in the domestic China market, including sponsoring and underwriting A-shares, foreign investment shares, and government and corporate bonds as well as providing financial advisory services. Since October 2016, it has also operated a securities brokerage business in Shenzhen Qianhai. 

Last December, the CSFS business launched an equity trading service geared for private securities investments funds, part of the JV's move to bolster onshore brokerage in the Asian country. Via its newly-launched asset management brokerage trading terminal, the JV is widening its client base by offering trading and execution services to certain domestic private securities investment funds (including hedge funds), in addition to the public mutual funds and qualified foreign institutional investors (QFIIs) and renminbi qualified foreign institutional investor (RQFIIs).

Credit Suisse’s main domestic rival, Zurich-listed UBS, said in late November 2018 that it had been approved by Chinese regulators to boost its stake in its securities joint ventures in China, UBS Securities Co Ltd, from 24.99 per cent to 51 per cent.