Deutsche Bank and Shanxi Securities China joint venture approved
Deutsche Bank and Shanxi Securities Co. Ltd. today announced that their agreement to form a new securities joint venture has been approved by the China Securities Regulatory Commission (CSRC).
The joint venture, named “Zhong De Securities Company Limited”, will be registered and principally located in Beijing. Under the terms of the agreement, Shanxi Securities Co. Ltd will hold a 66.7% interest, with the remaining 33.3% being held by Deutsche Bank AG.
The approval provides Deutsche Bank with access to China’s attractive securities market. The scope of business includes underwriting and sponsorship of shares (including A shares and foreign investment shares) and bonds (including government and corporate bonds), and other businesses as may be approved by the CSRC.
The approval of the joint venture marks another milestone for Deutsche Bank in China, which has continued to build market share and invest significantly over the past year. In January 2008, Deutsche Bank incorporated locally in Beijing and later increased its stakes in Harvest Asset Management and Hua Xia Bank to 30% and 13.7%, respectively. In April 2008, Deutsche Bank (China) Co. Ltd. (Deutsche Bank China) moved into its new flagship building in Beijing, “Deutsche Bank Tower”.
Colin Grassie, Chief Executive Officer, Deutsche Bank Asia Pacific said, “This approval is particularly significant in that the JV with Shanxi Securities is the last major license we require to enable the bank’s core global businesses to operate in China. We are delighted to have partnered with Shanxi Securities and look forward to a long and successful partnership.”
Lee Zhang, Group Chairman of Deutsche Bank China and Head of Global Banking Asia-Pacific (ex-Japan), said, “This securities joint venture extends our ability to serve clients’ needs in China. Deutsche Bank, Shanxi Securities and our clients will benefit significantly from this relationship.”
Zhang Guanghui, Chairman of Shanxi Securities Co. Ltd., said, “The establishment of the joint venture between Shanxi and Deutsche Bank elevates Shanxi's business to a new level and will deliver first class services to domestic clients. I am inspired by this development, especially given the continued development of the Chinese financial markets and against the background of current global financial complexities.”
Deutsche Bank commenced business in China in 1872 and strongly participates in cross border investment banking; sales and trading activity; transaction banking and trade finance services; private wealth management; asset management; and retail banking. Apart from the Beijing operation, Deutsche Bank China also has branch offices in Shanghai and Guangzhou.
Shanxi Securities was founded in 1988 and is headquartered in Taiyuan, Shanxi. It has more than 800 employees, and operates 53 branches in Shanxi province and other major cities, including Beijing, Shanghai, Shenzhen, Xi'an and Ningbo. Shanxi Securities was awarded the status of "Innovative Securities Company" by the Securities Association of China in August 2007 and “Excellence in Sponsoring Institutions on Mid/Small Cap Enterprise Board” by the Shenzhen Stock Exchange in 2007. Shanxi won the Golden Key Award for securities companies at the China Capital Market Annual Conferences in both 2007 and 2008.
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About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 81,308 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
About Deutsche Bank China
Deutsche Bank (China) Co., Ltd. is a wholly-owned foreign-funded subsidiary of Deutsche Bank AG and is incorporated in the People’s Republic of China. Headquartered in Beijing, Deutsche Bank China now operates branches and sub-branches in Beijing, Shanghai and Guangzhou with over 500 employees.
About Shanxi Securities Co. Ltd.
Shanxi Securities Co. Ltd. (Shanxi) is among the first group of securities firms established in China. It was funded in 1988 as the Shanxi Securities Firm and was restructured to form a limited liabilities company in 1998. In 2001, Shanxi acquired securities business assets of 5 trust companies in Shanxi province and increased its capital to RMB 1.025 billion by placing new shares. In 2006, the firm further increased its registered capital to RMB 1.304 billion by issuing new shares. In January 2008, the entire firm was restructured and established as Shanxi Securities Co. Ltd with registered capital reaching RMB 2 billion.