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Credit Suisse ups stake in Chinese venture

Thursday, June 30, 2016 - 01:29

Credit Suisse is said to be planning to boost its stake in its Chinese securities joint venture to the maximum permissible 49 percent. As Hayley Platt reports, the move would make it the first foreign bank to take advantage of relaxed Chinese investment rules.

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London's financial district Canary Wharf is the entry point to Europe for many of the world's investment banks. Not least Credit Suisse. But amid new pressures following Britain's surprise 'Brexit' vote last week - Credit Suisse is looking to Asia for growth. It already owns a third of a stake in its Chinese joint venture securities business. Now it wants to increase it to 49 percent - the maximum allowed under Chinese regulations. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "I think rather than batten down the hatches they have to look to see through on that business plan and get some exposure to the more growing areas of the world where the opportunities lie." China only relaxed its investment rules four years ago. Credit Suisse is thought to be the first to take advantage. Hoping for a bigger slice of China's fee paying business deals to repair its battered share price. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "They are more European-based and that makes them more vulnerable to any changes in the regulation or changes in the economic outlook. Also the interest rate outlook within Europe which is now for lower interest rates for longer which as we know challenges the ability for banks to make a return on their lending business." Shares in Switzerland's second-biggest bank touched record lows in June. They've plunged more than 50 percent since Tidjane Thiam took up his new post just under a year ago.

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Credit Suisse ups stake in Chinese venture

Thursday, June 30, 2016 - 01:29