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Goldman Sachs moved on Tuesday the 8th. December to acquire the remaining stake in a Chinese securities joint venture to pursue further growth in the world’s second largest economy.
The US investment bank agreed with its Chinese partner to acquire a further 49% of the 17-year-old association.
Beijing previously restricted foreign firms to minority status, but the « Phase 1 » trade agreement signed with President Donald Trump earlier this year opened the door to financial firms to take control of their operations.
« We are pleased to announce that the company has begun the formal process of acquiring 100% of our Chinese joint venture Goldman Sachs Gao Hua (GSGH), » Goldman executives said in a message to employees.
« The process has been initiated with regulators and we have signed a definitive agreement with our joint venture partner to acquire any outstanding shares in GSGH that we do not yet own. «
The move signals the recent opening of China to Wall Street heavyweights who have long sought a larger presence in China.
JPMorgan Chase was granted a controlling stake in its Chinese trading company in December 2019, followed by similar shifts at Goldman and Morgan Stanley in March.
The new company will be named Goldman Sachs (China) Securities Company Limited, according to letters from Chairman David Solomon and two other senior executives.
« This is focused on growing and strengthening our existing China businesses, expanding our addressable market, and investing in talent and technology.
« These efforts coincide with ongoing reforms in China’s capital markets, continued robust economic growth and the growing needs of increasingly discerning customers. « – Rappler. com
Goldman Sachs, Joint Venture, China, Finance, Security, Investment Banking
World News – UK – Goldman Sachs to buy 100% of the Chinese joint venture
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Ref: https://www.rappler.com