Goldman Sachs Group Inc. is moving to acquire 100% ownership of its securities joint venture in China after partnering with domestic brokerages for 17 years, deepening its investment in the world’s second-largest economy.
New York-based bank Goldman Sachs is applying with Chinese regulators to take full control of Gao Hua Securities Company and has signed an agreement to acquire 49% of the venture, according to an internal memorandum it saw Huh. The Wall Street Journal.
Goldman is the first global bank to seek full ownership of its securities business in China and intends to change its name to Goldman Sachs (China) Securities Co. In March, the country’s securities regulator took over majority control of the Beijing-based entity The firm’s bid was approved. .
“One hundred percent ownership of our franchise on the mainland represents a significant commitment and investment in China,” Chief Executive Officer David Solomon, Chief Operating Officer John Waldron and Chief Financial Officer Stephen Shere said in the memo on Tuesday.
American investment banks, asset managers and credit card companies have long had a large presence in China, but were held back for decades by ownership restrictions on financial businesses in the country. Wall Street has emerged as a major winner in the trade war between Washington and Beijing, following an agreement signed in January promising more access to China’s financial sector for American institutions.