Credit Suisse Founder Securities Ltd Receives Business Permit from CSRC
Credit Suisse and Founder Securities announced today that their securities joint venture in China has received the business permit from the China Securities Regulatory Commission (“CSRC”) to commence providing investment banking services to clients in the domestic China market.
The joint venture, Credit Suisse Founder Securities Limited, is 33.3% owned by Credit Suisse, with the remainder held by its partner Founder Securities. The joint venture intends to focus on the sponsoring and underwriting of A-shares, as well as government and corporate bonds in China initially.
It was announced in June 2008 that the CSRC has given approval to establish this securities joint venture. It was the first approval that the CSRC has granted since the new regulations relating to the establishment of Sino-foreign securities companies were announced in December 2007.
Kai Nargolwala, Credit Suisse Chief Executive Officer in Asia Pacific, said: “China’s domestic investment banking services market has long been a coveted crown jewel for many global banks looking to expand their footprint and reach in growing emerging markets. The investment case for China has not changed for us despite current market sentiment.”
“The joint venture is entering the market at a crucial time, as China continues to see solid demand for corporate finance services and clients increasingly look to quality of advice. It has brought together one of the most professional and experienced teams in the market and is well positioned to be a leading player in the domestic capital markets,” said Wei Xin, Chairman of Founder Group.
Lei Jie, Chairman of Founder Securities, has been appointed Chairman of the Beijing-based joint venture with Neil Ge as its Chief Executive Officer. Mr Ge was Managing Director at Credit Suisse’s Investment Banking Shanghai Representative Office.
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