Goldman Sachs' wholly-owned holding of Goldman Sachs Goldman Sachs has completed regulatory filings

In the near future, Goldman Sachs Gaohua will change its name to Goldman Sachs (China). On October 18, Goldman Sachs, an internationally renowned investment bank, announced that the China Securities Regulatory Commission (CSRC) had approved the filing of Goldman Sachs as the sole shareholder of its Chinese joint venture Goldman Sachs Gaohua Securities Co., Ltd. (Goldman Sachs Gaohua). Goldman Sachs will acquire a stake in Goldman Sachs Gaohua, which it does not currently own. This marks a new chapter in goldman sachs 17 years after it established a joint venture in China.

It is reported that the acquisition of a full stake in Goldman Sachs Gaohua will provide a better positioning for Goldman Sachs' long-term development and success in China. The business unit operated by Beijing Gaohua is now beginning to relocate to Goldman Sachs Gaohua, and once this process is completed, Goldman Sachs Gaohua will be renamed Goldman Sachs (China) Securities Co., Ltd.

Founded in 2004, Goldman Sachs Goldman Co., Ltd. is a joint venture between Goldman Sachs and Beijing Gaohua Securities Co., Ltd., which was established in the same year. According to Tianyan, Goldman Sachs Gaohua Securities has only two shareholders, Goldman Sachs Group holds 51% of the shares, and Beijing Gaohua Securities holds 49%. Beijing Gaohua Securities is invested and established by three investment companies (Beijing Houfeng Venture Capital Co., Ltd., Beijing Gaowang Venture Capital Co., Ltd., Beijing Deshang Venture Capital Co., Ltd.) and Legend Holdings, each holding 25% of the shares.

In 2020, goldman Sachs Gaohua Securities operating income was 426 million yuan, down 18% from 2019, and net profit was 58.22 million yuan, an 11% decrease from 2019.

In March last year, the CSRC said that from April 1, 2020, the foreign equity ratio restriction of securities companies will be lifted, and eligible foreign investors may submit applications for the establishment of securities companies or change the actual controller of the company in accordance with the requirements of laws and regulations, relevant provisions of the CSRC and relevant service guidelines. This means that the shareholding ratio of foreign securities companies can reach 100%. Subsequently, the foreign shareholders of a number of foreign-controlled securities companies publicly stated that they would seek to hold 100% of the shares of the controlling securities companies.

In early December last year, Goldman Sachs initiated the process of acquiring a 100% stake in the joint venture Goldman Sachs Goldman Sachs. At that time, the relevant person in charge of Goldman Sachs told the media that the cooperation between Goldman Sachs Group and Gaohua Securities in the past 17 years was successful, and after the completion of 100% shareholding, it will be integrated with Goldman Sachs' global advantage business, in addition to the main investment banking business, investment, asset management business and personal wealth sector are the key directions for the future development of the Chinese market.

If all goes well, Goldman Sachs Goldman Is expected to become the second wholly foreign-owned securities firm in China. Previously, JPMorgan Chase's shareholder change had been approved by the SFC for the record. On the evening of August 6, J.P. Morgan announced that the China Securities Regulatory Commission (CSRC) had approved the filing of the matter of J.P. Morgan Chase & Co. Co., Ltd.'s controlling shareholder, J.P. Morgan Chase & Co. Co., Ltd., which had acquired the shares held by five domestic shareholders and become the sole shareholder of J.P. Morgan Chase & Co. (China).

What impact will the accelerated entry of foreign securities firms into China's capital market have on the domestic securities industry? Everbright Securities believes that in the short term, the entry of foreign securities companies will intensify the competitive pattern in the industry and promote further changes in domestic securities companies to consolidate their advantages. In the long run, foreign securities companies are expected to introduce their operational experience in the international market to China, lead the innovation and development of domestic securities companies, and promote the integration of domestic securities companies into international competition.

Text/Beijing Youth Daily reporter Cheng Jie

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