Credit Suisse and Beijing University’s Founder Group to Collaborate on Financial Services Businesses in China
Hong Kong.- Credit Suisse and Founder Group’s securities firm, Founder Securities, intend to apply for the establishment of a joint venture in the near future. In addition, Credit Suisse and Founder Group intend to explore establishing a strategic alliance in areas such as domestic institutional brokerage and wealth management, when permitted under Chinese laws and regulations.
Subject to receiving all regulatory approvals, Credit Suisse and Founder Securities intend to enter into a joint venture to engage in the sponsoring and underwriting of A-shares, foreign investment shares and government and corporate bonds; the brokerage of foreign investment shares and the brokerage of government and corporate bonds. Credit Suisse proposes to take a 33.3% stake in the proposed joint venture.
In relation to the contemplated strategic alliance, Credit Suisse and Founder Group aim to enhance the strategic, market and financial position of Credit Suisse and Founder Securities in China, by creating an improved operating environment, and in turn contribute to the overall profitability of the financial services sector. The contemplated strategic alliance will also explore opportunities for greater levels of synergy between Credit Suisse and Founder Securities, and augment the breadth and quality of products and services offered to clients in order to create value for the parties. Finally, if and when relevant legislation permits, the parties may also seek regulatory approval for the joint venture to expand its scope of business.
“Credit Suisse believes that in Founder it has an extremely strong partner, with invaluable local expertise and experience in the Chinese financial services industry and we look forward to a strong and mutually rewarding relationship,” said Paul Calello, CEO of Credit Suisse Investment Bank and member of the Executive Board. “I am confident that Credit Suisse’s world leading franchise and Founder’s local capabilities can combine to create an unrivaled alliance.”
Kai Nargolwala, CEO of Credit Suisse Asia Pacific and member of the Executive Board, added: “This is a great way to start 2008. A lot of work has gone into finding the right partner and bringing us to this point in our relationship. I am looking forward to working with Founder to build a leading financial services business in China.”
Wei Xin, Chairman of Founder Group, said: “This partnership marks the beginning of a new, exciting chapter in Founder Group’s history. I am convinced that Credit Suisse is our best choice of partner in the financial services industry not only because of its financial strength but also its management’s commitment to ensuring our strategic relationship’s success and its impressive track record in China. The combined strength will create a formidable powerhouse in China’s fast growing securities industry.”
* Sheel Kohli, Corporate Communications, Tel. +852 2101 7877
* Josephine Lee, Corporate Communications, Tel. +852 2101 6041
Background on Credit Suisse in China
Credit Suisse has established some of the longest running relationships in China among international banks, having maintained ties for over 50 years and a presence in the country for more than two decades. The Bank has been instrumental in international fundraising for Chinese corporations. The Bank has acted as bookrunning lead manager in several of China’s noteworthy IPOs in both the Hong Kong and U.S. markets in the past two years. These IPOs include Industrial and Commercial Bank of China, China Construction Bank, Belle, Shanghai Electric, Guangzhou R&F Properties, Baidu, SunTech Power, EHouse, and Wuxi PharmaTech. Credit Suisse has also received a US$500 million Qualified Foreign Institutional Investor (QFII) quota and a US$300 million Qualified Domestic Institutional Investor (QDII) quota. It also runs a fund management joint venture with ICBC, the first Sino-foreign asset manager with a Chinese commercial bank when it was formed in 2005 with RMB55 billion assets under management, as of September 30, 2007.
As one of the world’s leading financial institutions, Credit Suisse provides its clients with investment banking, private banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 47,000 people. Credit Suisse’s parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com
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