BEIJING: UBS has become the first foreign financial institution allowed to take majority control of its Chinese securities joint venture.
Beijing in April relaxed the rules in the financial industry in a move to open up the economy, and the Swiss bank's application was approved this week.
“The China Securities Regulatory Commission (CSRC) recently approved UBS AG to increase the shareholding ratio of UBS Securities Co Ltd to 51%,” the regulator said in a statement late Friday.
USB, which currently owns about 25% of the joint venture, said in a statement that it would acquire additional shares from China Guodian Capital Holdings and Cofco.
Other financial firms including US-based JP Morgan Chase and Nomura Holdings of Japan, are still awaiting approval for similar moves.
Laws limiting foreign ownership of local financial firms have long stopped global banks from independently operating in China and limited their growth.
But Beijing said it would liberalise shareholding limits in the financial services industry last year, soon after US President Donald Trump visited.
Officials moved to make good on the pledge in April, immediately allowing foreign investors to take 51% stakes in securities firms and fund managers, with pledges set out to eventually allow full control.
Earlier this week, the European insurance giants Allianz and Axa received approval to expand their footprint in China. Allianz has been allowed to start a company fully funded by foreign capital while Axa would take full control of a joint venture.