Credit Suisse puts up China brokerage venture for sale -sources

Credit Suisse AG

09/06/2023 04:54

By Selena  Li and Engen Tham
       HONG KONG/SHANGHAI, June 9 (Reuters) - Credit Suisse
 CSGN.S  and a joint venture partner are seeking buyers for
their China securities brokerage business due to the Swiss
bank's takeover by rival UBS  UBSG.S , said two people with
direct knowledge of the matter.     
    Citigroup  C.N  had at one point shown interest in acquiring
Credit Suisse Securities China (CSS), they added.
    Citi, whose CEO Jane Fraser was in China this week, is
setting up a securities brokerage in China. It had hoped to fast
track development via an acquisition but decided to stick to its
original plan to grow the business organically, said one of the
people.
    UBS already has a majority-owned securities brokerage
business in China. According to Chinese securities regulations,
one entity cannot hold two majority-owned brokerage licenses.
    Credit Suisse owns 51% of CSS and it struck a deal to buy
out its partner Founder Securities  601901.SS  last year. That
transaction is yet to receive Chinese regulatory approval.
        The sources asked not be identified due to the
sensitivity of the matter.
    UBS and a spokesperson representing both Credit Suisse and
CSS declined to comment. Citi declined to comment.
    Founder Securities and the China Securities Regulatory
Commission did not immediately respond to Reuters requests for
comment.

 (Reporting by Selena  Li in Hong Kong and Engen Tham in
Shanghai; Editing by Sumeet Chatterjee and Edwina Gibbs)
 ((Selena.Li@thomsonreuters.com; +852 39525868;))