Goldman Sachs gets green light for total ownership of Chinese venture
US bank Goldman Sachs has received approval from the China Securities Regulatory Commission (CSRC) to take full ownership of its Chinese subsidiary.
Goldman is the second US bank given approval for a JV takeover
Goldman Sachs Gao Hua Securities (GSGH), set up in 2004, has operated as a joint venture since its foundation between Goldman and a mainland partner.
The US bank announced its intention to buy out that partner in December last year, kicking off a regulatory examination.
According to Goldman, the migration of its onshore business units from Beijing Gao Hua Securities to GSGH is “well underway”.
The new unit is set to be renamed to Goldman Sachs (China) Securities Company. Its operations, which revolve around investment banking, research, and equity, will likely remain unchanged.
“Attaining full ownership of GSGH will enable us to position our firm for long-term growth and success,” the bank writes in a statement.
Goldman is the second Wall Street bank to gain approval for full ownership, after JP Morgan Chase in August. JP Morgan is also in talks to set up a second joint venture.
These regulatory moves are seen as evidence China is prepared to open up its capital markets to major overseas players.
