UBS came into possession of the stake when it bought Credit Suisse last March. The Swiss bank said China remains an important market, but it already has an onshore presence, and it made sense to sell its 36.1 per cent stake to a long-term business partner.

UBS said yesterday that – along with Founder Securities Co Ltd – it had sold its 85.01 per cent stake in Credit Suisse Securities (China) – or CSS – to Beijing State-owned Asset Management Co.

The transaction involved UBS’s 36.01 per cent stake in the Chinese business for a total of $91.4 million, and Founder Securities’ sale of a 49 per cent stake, worth $124 million. Founder Securities is a Chinese securities business which was listed in Shanghai in 2011.

The completion of the transaction is subject to the necessary regulatory approvals and customary closing conditions, UBS said in a statement yesterday.

UBS came to own the stake in CCS after it bought Credit Suisse in March last year. 

The CSS entity was formed in 2008 as a securities joint venture in China by Credit Suisse and Founder Securities. Since June 2020, Credit Suisse held a 51 per cent shareholding of the joint venture, with Founder Securities owning the remaining stake. 

“China is a key market for UBS. Our acquisition of Credit Suisse means a bigger presence for us there. However, we have a comprehensive onshore multi-entity setup across the two firms with specific regulatory requirements to comply with,” Sergio Ermotti, group chief executive, said. “So it is optimal for us to sell the 36.01 per cent stake in CSS to our key long-term business partner with whom we have worked closely for almost 20 years to develop our business in China.”

Beijing State-owned Assets Management Co Ltd said that BSAM is one of the few municipal state-owned enterprises in Beijing which has finance as its core business, covering banking, securities, factor market, consumer finance, etc., and has extensive experience in the management of financial enterprises. 

When the transaction is complete, UBS and BSAM will hold 14.99 per cent and 85.01 per cent in CSS respectively.