UBS has obtained approval from the China Securities Regulatory Commission (CSRC) to divest a 36.01% stake in Credit Suisse Securities (China) Limited (CSS) to Beijing State-owned Assets Management (BSAM).
The bank will maintain a 14.99% stake in the China unit.
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This move comes after UBS Group incorporated Credit Suisse into its fold in June 2023.
CSS, a securities joint venture established in 2008, has seen Credit Suisse holding a 51% interest since June 2020.
The recent transaction follows a tri-party agreement signed in June 2024, where UBS and Founder Securities agreed to sell 36.01% and 49% of their stakes in CSS to BSAM, respectively.
UBS Asia Pacific president and global wealth management co-president Iqbal Khan said: “Asia Pacific is central to our strategic ambitions and China is an important market here.
“This transaction helps optimise the strategic set-up of our onshore platforms in China and we are pleased to continue our collaboration with our 20-year business partner, BSAM.”
UBS China country head Janice Hu said: “UBS has had a longstanding presence in China for over 35 years.
“We will continue to invest in China and broaden our leadership position in the Investment Bank while expanding our Wealth Management and Asset Management businesses.”
Following the acquisition of Credit Suisse, UBS now manages $6.1tn in invested assets as of the fourth quarter of 2024. UBS operates from its headquarters in Zurich, Switzerland, and serves clients in over 50 markets globally.
In Q4 2024, UBS reported a net profit of $770m, following a $279m loss in the same quarter of 2023.
BSAM is a state-owned investment holding group with core competencies across various sectors, including financial services.
Its financial services business spans multiple areas such as banking, securities, funds, property rights transactions, and management of non-performing assets.
