Storied Wall Street Bank Goldman Sachs Group has launched procedures to acquire full ownership of its Chinese securities joint-venture, following the cancellation of ownership restrictions on foreign investors by Beijing.
The bank circled an internal memo on Tuesday to announce that it had commenced procedures with regulators to increase its ownership stake in Goldman Sachs Gao Hua (GSGH) from 51% to 100%, according to a report from Reuters. The Hong Kong office of Goldman Sachs subsequently confirmed the report.
“One hundred percent ownership of our franchise on the mainland represents a significant commitment to and investment in China, outlined in our China strategic plan,” said the memo.
Goldman Sachs previously stated that it would double its staff numbers in China to 600 by 2025, flagging its strong commitment to the Chinese market.
China has stepped up efforts to further open its financial sector since early 2018, and in April 2020 cancelled restrictions on full foreign ownership of Chinese securities firms.
In November JPMorgan obtained 71% ownership of its China securities company via the acquisition of a 20% equity stake, while Credit Suisse indicated in July that it planned to eventually acquire full ownership of its securities joint-venture.