Credit Suisse won approval from China's securities supervisor on Sunday to form a joint venture with a domestic brokerage firm, Founder Securities Co.
This was the first such approval granted by the China Securities Regulatory Commission (CSRC) since it halted foreign investments in domestic brokerages in late 2005.
The CSRC said Founder will hold 66.7 percent of the Beijing-based joint venture, valued at 533.6 million yuan (76.2 million U.S. dollars), while Credit Suisse will invest 266.4 million yuan for a 33.3 percent stake.
The new company can offer services such as underwriting domestic A shares, foreign stocks and bond issues, according to a CSRC statement.
Also on Sunday, the CSRC said that before it opens the securities market further to foreign investment, it will assess current policies with an aim of improving risk prevention.
(Xinhua News Agency June 16, 2008)
