Deutsche Bank and Shanxi Securities has announced that their agreement to form a new securities joint venture has been approved by the China Securities Regulatory Commission (CSRC).
The joint venture, named “Zhong De Securities Company Limited”, will be registered and principally located in Beijing. Under the terms of the agreement, Shanxi Securities Co. Ltd will hold a 66.7% interest, with the remaining 33.3% being held by Deutsche Bank AG.
The approval provides Deutsche Bank with access to China’s attractive securities market. The scope of business includes underwriting and sponsorship of shares (including A shares and foreign investment shares) and bonds (including government and corporate bonds), and other businesses as may be approved by the CSRC.
The approval of the joint venture marks another milestone for Deutsche Bank in China, which has continued to build market share and invest significantly over the past year. In January 2008, Deutsche Bank incorporated locally in Beijing and later increased its stakes in Harvest Asset Management and Hua Xia Bank to 30% and 13.7%, respectively. In April 2008, Deutsche Bank (China) Co. Ltd. (Deutsche Bank China) moved into its new flagship building in Beijing, “Deutsche Bank Tower”.
“This approval is particularly significant in that the JV with Shanxi Securities is the last major license we require to enable the bank’s core global businesses to operate in China,” says Colin Grassie, chief executive officer, Deutsche Bank Asia Pacific. “We are delighted to have partnered with Shanxi Securities and look forward to a long and successful partnership.”
“This securities joint venture extends our ability to serve clients’ needs in China,” says Lee Zhang, group chairman of Deutsche Bank China and head of global banking Asia-Pacific (ex-Japan). “Deutsche Bank, Shanxi Securities and our clients will benefit significantly from this relationship.”
“The establishment of the joint venture between Shanxi and Deutsche Bank elevates Shanxi’s business to a new level and will deliver first class services to domestic clients,” says Zhang Guanghui, chairman of Shanxi Securities Co. Ltd.. “I am inspired by this development, especially given the continued development of the Chinese financial markets and against the background of current global financial complexities.”
D.C.