US investment bank Goldman Sachs Group Inc is moving closer to gaining full control of its securities business in China after signing an agreement to buy out its local joint venture partner.
The deal will likely make Goldman Sachs the first foreign bank to gain 100 percent ownership of its securities joint venture on the Chinese mainland after China's top securities regulator removed foreign ownership restrictions in April to further open the country's financial services industry to overseas investors.
Under the agreement, Goldman Sachs will boost its current stake of 51 percent to 100 percent in its China securities JV.
Industry experts said the move by Goldman Sachs highlighted foreign investors' bullish view on the Chinese economy and its financial market as the country is expected to be the only major economy to achieve growth this year.
More foreign banks have accelerated their expansion in the Chinese market. Many have expressed interest to increase investment in China and boost their holdings in China JVs to gain a bigger presence in the nation's securities market including the stock and bond underwriting businesses.
Goldman Sachs said earlier that it would increase its headcount in China to 600 by 2025 as part of its expansion plans.
