Credit Suisse and Citigroup are vying for a joint venture with China's Founder Securities as global players seek a partnership in China's lucrative brokerage sector, state press said yesterday.
Credit Suisse has signed an initial agreement with Founder for a 33 percent stake in the joint venture, which will focus on investment banking business, the Securities Times reported.
But weeks ago Citigroup started similar talks with Founder, based in Hangzhou city of eastern China, making the final outcome of the venture talks uncertain, the report said.
China's flourishing financial service industry is one of the sectors that the US has been pushing China to open up more to foreign competition.
In the last round of China-US "strategic economic dialogue" in May, China has agreed to remove a barrier on the entry of new foreign securities firms and resume licensing securities companies, including joint ventures in the second half of this year.
The deal for the joint venture is expected to be submitted to China's securities regulator for approval in October, the report said.
China has also promised to allow foreign securities firms to expand their operations in the country to include brokerage, proprietary trading and fund management before the next round of the dialogue this year.
There are only three securities joint ventures approved in the country, including Morgan Stanley's venture with China International Capital Corp, Goldman Sachs Gaohua Securities and UBS' venture with Beijing Securities.
Credit Suisse and Citigroup officials declined to comment.
The US Department of State yesterday criticized Beijing over its misrepresentation of the US’ “one China” policy in the latest diplomatic salvo between the two countries over a bid by Taiwan to regain its observer status at the World Health Assembly, the decisionmaking body of the WHO. “The PRC [People’s Republic of China] continues to publicly misrepresent U.S. policy,” Department of State spokesman Ned Price wrote on Twitter. “The United States does not subscribe to the PRC’s ‘one China principle’ — we remain committed to our longstanding, bipartisan one China policy, guided by the Taiwan Relations Act, Three Joint Communiques, and
FATES LINKED: The US president said that sanctions on Russia over Ukraine must exact a ‘long-term price,’ because otherwise ‘what signal does that send to China?’ US President Joe Biden yesterday vowed that US forces would defend Taiwan militarily in the event of a Chinese attack in his strongest statement to date on the issue. Beijing is already “flirting with danger,” Biden said following talks with Japanese Prime Minister Fumio Kishida in Tokyo, in which the pair agreed to monitor Chinese naval activity and joint Chinese-Russian exercises. Asked if Washington was willing to get involved militarily to defend Taiwan, he replied: “Yes.” “That’s the commitment we made,” Biden said. “We agreed with the ‘one China’ policy, we signed on to it ... but the idea that it can be
‘TOO RESTRICTIVE’: Ending US sales of weapons that do not fall under the category of ‘asymmetric’ would hamper Taiwan’s defense against China, two business groups said Taiwan’s weapons procurement decisions are made based on its needs, and are not influenced by individual arms dealers, the Ministry of National Defense (MND) said yesterday after two US business groups questioned a US official’s comment on arms sales to Taiwan. US Deputy Assistant Secretary of State for Regional Security Mira Resnick told the business groups via video link on Saturday that Washington would adjust the types of weapons sold to Taiwan and end “most arms sales to Taiwan that do not fall under the category of ‘asymmetric.’” The American Chamber of Commerce in Taiwan and the US-Taiwan Business Council on Monday
Local COVID-19 cases are expected to continue rising in the upcoming week, the Central Epidemic Command Center (CECC) said yesterday, as it reported a record-high 85,310 new domestic cases and 41 deaths. Daily case numbers had remained in the 60,000s for the past six days before surging about 30 percent yesterday, said Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center. Centers for Disease Control (CDC) Deputy Director-General Philip Lo (羅一鈞), deputy head of the CECC’s medical response division, said the number of polymerase chain reaction (PCR) tests conducted on Tuesday also marked a record-high of 112,915, with a