UBS Securities is looking to establish a majority stake in its China securities joint venture. Once regulatory approval is secured it will likely boost capital at UBS to a minimum of CNY2bn ($287m). The intent is to grow in more investment-heavy business like margin financing and also be allowed to get in on market-making in over-the-counter equity derivatives. UBS Securities has made progress developing an onshore securities business capable of offering complete services and was also ahead of others in seeking to increase its JV stake to 51%. Its push here would decrease its dependence on China’s cash equities business.
UBS is looking to establish a majority stake in its China securities joint venture. Once regulatory approval is secured it will likely boost capital at UBS Securities to a minimum of CNY2bn ($287m). The intent is to grow in more investment-heavy business like margin financing and also be allowed to get in on market-making in over-the-counter equity derivatives. UBS has made progress developing an onshore securities business capable of offering complete services and was also ahead of others in seeking to increase its JV stake to 51%. Its push here would decrease its dependence on China’s cash equities business.