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Goldman Sachs seeks majority stake in China joint venture
Published on: 2019-08-23
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030US banking giant Goldman Sachs has applied to take a controlling stake in its securities joint venture (JV) in China, a fresh sign that the world's second-largest economy continues along the path of financial opening-up despite lingering trade woes with the US.

The timing of the application also hints that it might become a bargaining chip for China in trade talks with the US, an industry analyst said.

031Beijing Gao Hua Securities holds the remaining 67 percent of the joint venture, which was launched in 2004.

The CSRC received the securities JV's application materials on Monday, Chinese news site cnstock.com reported on Wednesday. The securities regulator has yet to publicly comment on the application.

As part of the guidelines for foreign investment in Chinese securities firms, which were released by the CSRC in April 2018, the cap on foreign shareholdings was raised to 51 percent from previous 49 percent.

033That foreign brokerages are willing to up their stakes in China's market also shows that foreign investors are still bullish on China's growth prospects, she said.

The flagship Shanghai Composite Index edged up 0.01 percent, or 0.33 points, to close at 2,880.33 points on Wednesday. The index has climbed about 15 percent year to date.

With this move, the Wall Street banking giant seeks to join its global peers in tapping into China's equity market, which remains largely unexplored by foreign investors.

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