Goldman Sachs Receives Approval to Increase Ownership of China JV to 51%
BEIJING, March 27, 2020 – Goldman Sachs announced today that it has received approval from the China Securities Regulatory Commission (CSRC) to increase its ownership of Goldman Sachs Gao Hua Securities Company Limited (GSGH) from 33% to 51%.
Commenting on the approval, Todd Leland, co-President of Goldman Sachs in Asia Pacific ex-Japan, said: “This is a significant milestone in the evolution of our business in China. We will now be seeking to implement as soon as possible the migration of business units currently operating under Beijing Gao Hua Securities across to one single corporate entity, GSGH. Concurrently, we will be seeking to move towards 100% ownership at the earliest
James Paradise, co-President of Goldman Sachs in Asia Pacific ex-Japan added: “The injection of new capital to increase our ownership of GSGH by 18% is part of a wider commitment to and investment in our China franchise as outlined in our China Five Year Plan. That plan is focused on growing and strengthening our existing China businesses, expanding our addressable market and investing in talent and technology. This effort coincides with the continued process of capital markets reforms underway in China.”
Goldman Sachs has been an active participant in China’s capital markets since the 1990s. The firm was the top international investment bank in the A-share equity and equity-linked league tables in 2018 and 2019, according to Dealogic data.
GSGH was established in 2004 as a joint venture between Goldman Sachs and Beijing Gao Hua Securities Company Limited.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
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