Credit Suisse Gets A Go For Chinese Venture

June 15, 2008 10:16 a.m. EST

Zürich, Switzerland (AHN) - China's securities regulator has approved the investment banking venture of Credit Suisse to participate in China's lucrative domestic stock underwriting market.

The development places Switzerland's second biggest bank in the league of elite foreign investment banks with domestic joint ventures in China. Credit Suisse will also be able to underwrite foreign-currency shares, and government and corporate bonds.

``This is a very important milestone in the implementation of Credit Suisse's ambitious Asia-Pacific growth strategy, particularly for a vitally important country like China,'' Credit Suisse Asia Pacific CEO Kai Nargolwala said in a statement carried by Bloomberg.

Credit Suisse owns 33.3 percent of its joint venture with Beijing-based Founder Securities Co. Its Chairman Lei Jie will remain as head of the joint venture while Credit Suisse Shanghai Managing Director Neil Ge will serve as CEO.

Goldman Sachs and UBS are two other foreign investment banks with joint investment ventures in China. Morgan Stanley, on the other hand, owns a stake at China International Capital Corporation.