Wed Sep 25 07:49:44 UTC 2024: ## DBS to Increase Stake in China Securities Joint Venture to 91%

**HONG KONG** – DBS Group, Singapore’s largest bank by assets, announced Wednesday that it is increasing its ownership in its China securities joint venture to 91 percent from 51 percent. The move comes as China implements aggressive measures to bolster its struggling economy and capital markets.

DBS confirmed it is acquiring stakes from its Chinese joint venture partners, pending regulatory approval. The bank aims to maintain a 91 percent holding, believing its Chinese partners continue to bring valuable expertise. This move follows similar actions by foreign banks such as JP Morgan and Morgan Stanley, who have also sought to increase their stakes in Chinese securities joint ventures, taking advantage of loosened foreign ownership restrictions.

In July, four Chinese shareholders of DBS Securities China auctioned off 40 percent of the joint venture for 408 million yuan (US$58.15 million). While details of the buyers and stake transfers have not been released, DBS’s announcement confirms their involvement.

This move comes at a time when slowing economic growth and sluggish markets have negatively impacted the profitability of securities companies in China. However, recent stimulus measures announced by Beijing, including a 500 billion yuan (US$71.24 billion) swap program designed to provide easier access to funding for financial institutions, have boosted prospects for the sector.

“I’m positive that these measures of monetary stimulus, as well as the support to the real estate market… are enough to stimulate and (restore) trust again,” said Sebastian Paredes, DBS’s head of North Asia and CEO for Hong Kong.

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