The approval allows the joint venture between Credit Suisse and Founder Securities to expand its scope to take on brokerage services in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai). This is on top of its existing capital markets activities such as sponsoring and underwriting A-share fundraisings, foreign investment shares, government as well as corporate bonds.
A trading outlet is in the final stages of being set up in Qianhai and is expected to start operating in early 2016.
Established in October 2008, CSFS is 33.3% owned by Credit Suisse with the remainder held by Founder Securities.
CSRC's nod is a boost to Credit Suisse’s ambitions in Asia, after it recently announced plans to double pre-tax income and client assets under management (AuM) by the end of 2018.
China is a key component in its Asia strategy and the lender has moved to improve its presence in the country by hiring David Liu to its Shanghai unit as head of fixed income structuring for China, global markets.
Liu was previously the sub-branch manager and structuring head for Deutsche Bank China (Shanghai) Pilot Free Trade Zone.
His appointment coincides with a series of other changes to Credit Suisse’s investment banking coverage and China A-share research capabilities.
New hires include Li Chen as China A-share strategist, Sam Li as head of China technology, Charles Zhou, diversified financials analyst, Anson Huang as Chinese banks analyst, David Hao as China media analyst and Kyna Wong, China technology analyst.
It has also hired Richard Kao as co-head of corporate finance for Greater China.
Earlier this month, the bank named two co-heads of investment banking and capital markets for Asia Pacific. Mervyn Chow and Edwin Low are replacing Vikram Malhotra who is taking charge of a new unit focusing on ultra-high net worth entrepreneurs.