Goldman Sachs has signed an agreement to buy out its China joint venture partner, making it the most advanced foreign bank to take full ownership of mainland securities business, reports Reuters. Goldman took ownership of its joint venture to 71% in November when it acquired an extra 20% in the mainland business.
- Goldman previously hinted it would double its headcount in China to 600 people by 2025 as part of the bank’s expansion plans.
- Unlike most of China’s joint ventures, Goldman had day-to-day operational control of its business, even with its minority ownership.
- In July, Credit Suisse said it wanted to own 100% of its China securities venture.
- Most of the international banks in China own 51% of their securities businesses, which typically house investment banking operations, with a Chinese partner.
- Full ownership could allow foreign banks to expand their operations in the multi-trillion-dollar Chinese financial sector and integrate them with their global businesses.
Goldman stock is currently declining. GS: NYSE is down 0.40% on premarket.
