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Goldman Sachs Permitted to Raise Shareholding Ratio to 51% in China

2020-09-16 14:17  

Goldman Sachs announced that it had been approved by China Securities Regulatory Commission (CSRC) to increase its stake in Goldman Sachs Gao Hua Securities Company Limited (Goldman Sachs Gao Hua) to 51% from 33%.

"This is a milestone in the development of our business in China. To be specific, with majority stock equity, we can begin to prepare the restructuring of physical structure of our business in China. We will strive to transfer and integrate as soon as possible all business and management departments operated in Beijing Gao Hua Securities into a single corporate entity—Goldman Sachs Gao Hua. Meanwhile, we're aiming to achieve 100% ownership as fast as we can," noted Todd Leland, Co-President of Goldman Sachs in Asia Pacific ex-Japan, at the mention of the approval.

"The 18% increase in Goldman Sachs Gao Hua's stake is part of our commitment to inject a large amount of new capitals into our business in China in the coming five years. We plan to focus on developing and strengthening our existing business in China, expanding our potential market and investing in talents and technology, which is consistent with China's ongoing capital market reform process," added James Paradise, Co-President of Goldman Sachs in Asia Pacific ex-Japan.

Goldman Sachs has been an active participant in China's capital markets over the past two decades. According to Dealogic, Goldman Sachs ranked ahead of other international investment banks in A-shares and stock-related issuances in 2018 and 2019.

Goldman Sachs Gao Hua, founded in 2004, is a joint venture of Goldman Sachs and Beijing Gao Hua Securities Company Limited that was established in the same year.