UBS has confirmed its plans to acquire full ownership of "UBS Securities" in China by increasing its stake to 100 percent.

The bank's joint venture partner, Beijing State-owned Assets Management (BSAM), will be auctioning its 33 percent stake, which UBS intends to purchase.

Currently, UBS holds a 67 percent stake in the venture. Additionally, UBS has reduced its involvement in the securities business of the former Credit Suisse in China.

It has sold around 36 percent of its 51 percent stake in "CS Securities" to BSAM, resulting in UBS holding a minority 15 percent stake.

This strategic move is in line with regulations that prohibit foreign banks from holding two licenses for the securities business in China simultaneously.

The temporary decline in UBS's shares was 1.23 percent, with the stock trading at 28 francs on the SIX exchange.