Another wholly foreign-owned brokerage is coming! Goldman Sachs will wholly own Goldman Sachs Gaohua

Goldman Sachs announced on October 18 that the China Securities Regulatory Commission (CSRC) has granted the record to Goldman Sachs becoming the sole shareholder of its Chinese joint venture, Goldman Sachs Goldman Sachs Goldman Securities Co., Ltd. ("Goldman Sachs Goldman Sachs Goldman Gaohua"), which will wholly own its Chinese joint venture. This marks a new chapter in goldman sachs 17 years after the establishment of the joint venture in China.

It is reported that the business unit operated by Beijing Gaohua is beginning to relocate to Goldman Sachs Gaohua, and after completion, Goldman Sachs Gaohua will be renamed Goldman Sachs (China) Securities Co., Ltd.

Acquisition of a stake in Goldman Sachs Gaohua, which is not currently owned

Goldman Sachs said on October 18 that it will acquire a stake in Goldman Sachs Gaohua that it does not currently own.

Goldman Sachs is the world's leading investment banking, securities and investment management firm, providing a range of financial services to a wide range of clients in a wide range of sectors, including corporate, financial institutions, governments, and individuals. Founded in 1869, the company is headquartered in New York and has branches in the world's major financial centers. In 2004, Goldman Sachs and Beijing Gaohua Securities Co., Ltd. jointly established a joint venture company, Goldman Sachs Gaohua.

In March 2020, Goldman Sachs received approval from the China Securities Regulatory Commission to increase its 33% stake in the joint venture to 51% control, a milestone in Goldman Sachs' development in China. In the process of restructuring, goldman Sachs not only develops and strengthens the existing local A-share listings, RMB corporate bonds, convertible bonds, domestic financial advisory and other businesses, but also plans to develop asset management and wealth management business in the medium and long term, and continue to invest in talents and technology.

China Securities News reporter learned from Goldman Sachs on December 8, 2020, that Goldman Sachs has started the process of acquiring 100% of the equity of the joint venture company Goldman Sachs Gaohua. Goldman Sachs' China strategic plan outlined that it will have 100% ownership of Chinese companies in the future, strengthen existing businesses, expand existing markets, and invest in talent and technology.

The relevant person in charge of Goldman Sachs Gaohua said in an interview with China Securities News reporter that after completing 100% control, 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.

Accelerate the promotion of high-level two-way opening up

Under the background of the acceleration of the liberalization of the restrictions on the shareholding ratio of foreign securities companies, the CSRC has approved a number of foreign-controlled securities companies. Adhering to the concept of openness, the high-level two-way opening up of China's capital market has been accelerated.

At the beginning of 2020, the CSRC relaxed the restrictions on foreign ownership of securities, funds and futures operating institutions one year in advance, and foreign-funded institutions achieved national treatment in terms of business scope and regulatory requirements. In addition to Goldman Sachs, a number of foreign-controlled or wholly-owned securities fund futures companies such as JPMorgan Chase, UBS Securities, and Fidelity have been approved.

In July 2020, the CSRC amended the rules to allow eligible branches and subsidiaries of foreign banks in China to apply for fund custody qualifications, and financial indicators such as net assets can be calculated according to the overseas head (parent) bank. At present, a number of foreign banks such as Citibank have obtained fund custody qualifications in Huazi Bank.

The new rules for qualified foreign investors, implemented in November 2020, further lower the entry threshold for foreign investors, expand the scope of investment, and make foreign investment operations more convenient. In addition, the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism continues to be optimized, the Shanghai-London Stock Connect mechanism operates stably, the China-Japan ETF interconnection products run smoothly, the Shenzhen-Hong Kong and Shanghai-Hong Kong ETF interconnection products are officially launched, the proportion of A-shares included in internationally renowned indices has gradually increased, and the scope and convenience of foreign investors' participation in A-share investment have increased significantly.

The MSCI China A50 Interconnection Index Futures Contract was officially traded on October 18. This is the first MSCI index futures introduced by the Hong Kong Stock Exchange with mainland A shares as a constituent stock, and in the future, the onshore and offshore products and markets of A-share index futures will achieve coordinated development, and the attractiveness of China's capital market will continue to increase.

Yi Huiman, chairman of the China Securities Regulatory Commission, said in his speech at the opening ceremony of the 60th World Federation of Exchanges (WFE) Annual Meeting on September 6: "In accordance with the unified deployment of the country's new round of high-level opening up, we are studying and launching relevant measures to further expand opening up, including continuing to broaden the scope of Shanghai-Shenzhen-Hong Kong Stock Connect, expanding and optimizing the Shanghai-London Stock Connect system, expanding the supply of international varieties of commodities and financial futures, and promoting the establishment of a qualification certification mechanism for overseas practitioners. Provide more fair, efficient and convenient services for foreign institutions and investors to participate in China's capital market. ”

Edit: Yu Hongbo