UBS is close to achieving full ownership of its securities joint venture in China, UBS Securities, as one of its partners, Beijing State-owned Asset Management (BSAM), plans to auction off its entire 33% stake in the joint venture.
This potential acquisition is a significant step for UBS in enhancing its operations in the Chinese financial market. Currently, UBS holds a 67% stake in UBS Securities. The auction for BSAM's stake is set at an asking price of 1.5 billion yuan ($207.10 million). UBS has confirmed that the process to increase its stake to 100% is already underway.
This move aligns with UBS's strategy to solidify its presence in China and capitalize on the growing financial landscape. UBS Securities became the first foreign majority-owned securities firm in China in 2018, highlighting the increasing openness of China's financial markets to foreign investment. The acquisition of BSAM's stake would not only enhance UBS's market share but also provide greater control over its operations in China.
This move is significant in the competitive Chinese financial sector, where foreign firms are seeking a larger market share. UBS's actions could also influence regulatory frameworks and investment strategies, serving as a bellwether for other international financial institutions looking to expand in China.