#GoldmanSach’s 100% buy-out of their China securities arm is a strong vote of confidence in China and in the growth of Chinese companies.
It is just part of a modern-day gold rush of foreign firms buying into China’s securities markets.
My take on what this means with CGTN’s thoughtful Hannah Hoexter, who asks great questions.
A great example of how Wall Street views China’s long-term prospects in a positive light. The investment in people and technology will raise the state of play in China’s securities markets benefiting both China and the US.
This is also the best example ever of the disconnect between Wall Street and Washington’s China hard-liners.
Who’s buying:
- JP Morgan Asset Mgmt: 100% planned
- #JPMorgan Chase: 100% planned
- #HSBC: 100% of life unit
- #MorganStanley: Majority
- #CREDITSuisse: Majority
- #Citigroup: first domestic fund custody license
- #Vanguard: Asia head office now in China, partner with Ant
- #Blackrock: plans 100% owned mutual funds
The firms want 3 things:
- A level playing field, competition with locals will be fierce;
- Better accounting, makes for better US listings;
- Easing of capital controls for RMB outflows.
