Credit Suisse Strike Deal to Buy Out CCP Joint Venture

Credit Suisse said on Thursday, September 8th, it had reached an agreement with a Chinese Communist Party (CCP) securities joint venture to acquire its local joint venture, according to a report.

 according to a filing by Founder Securities on the Shanghai Stock Exchange, the Credit Suisse has reached an agreement to buy Founder Securities’ 49% stake in the joint venture Credit Suisse Securities in China for 1.14 billion yuan ($163.92 million), initiating the conversion of the joint venture into a fully-owned operation.

 The deal comes more than two years after Credit Suisse gained a majority through capital injection into the venture in June 2020, which reached a resolution when top Credit Suisse executives discussed the bank’s growth strategy at a meeting in Singapore. Credit Suisse planned to tap into CCP’s massive financial market through venture.

 Over the past two years, global peers such as J.P. Morgan and Goldman Sachs have secured a head start in the market by converting their joint ventures in China into fully-owned operations.

 However, Credit Suisse’s acquisition of the joint venture has hit a setback. Its stability and future came into question with the departure of several executives, including Chief Financial Officer Annie Qiu, Chief Compliance Officer Yang Xu and Chief Information Officer Larry Tung.

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Translator: Formosa Taiwan English Team
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