HONG KONG (Reuters) - UBS Group AG (UBSG.S) plans to raise its stake in its Chinese securities joint venture to 49 percent from about 25 percent, sources with direct knowledge of the development said on Monday.
China allowed foreign banks to boost shareholdings in securities joint ventures to a maximum 49 percent in 2012 from the previous cap of a third to help modernize the country’s capital markets and boost capital flows into the country.
But foreign investments banks with securities joint ventures in China have not as yet raised their stakes as most of the ventures were small or struggling to break even due to sluggish onshore deals.
News of the UBS stake increase plan was first reported by the Wall Street Journal.
A spokesman for UBS declined to comment.
Reporting by Sumeet Chatterjee, Elzio Barreto and Julie Zhu; Editing by Stephen Coates