Goldman Sachs moved Tuesday to acquire the remaining stake in a China securities joint venture as it eyes further growth in the world's second biggest economy.
The US investment bank said it reached agreement with its Chinese partner to acquire another 49 percent of the 17-year-old association.
Beijing previously limited foreign firms to minority status, but the "phase one" trade deal President Donald Trump signed early this year opened the door to financial firms to take control of their operations.
"We are pleased to announce that the firm has commenced the formal process of acquiring 100 percent of our China joint venture, Goldman Sachs Gao Hua (GSGH)," Goldman executives said in a message to employees.
"The process has been initiated with regulators and we have signed a definitive agreement with our joint venture partner to acquire all of the outstanding shares in GSGH that we do not already own."
The step signals the latest opening of China to Wall Street heavyweights, who have long sought a greater presence in China.
JPMorgan Chase was granted a majority stake in its China trading venture in December 2019, followed in March by similar shifts at Goldman and Morgan Stanley.
The new entity will be called Goldman Sachs (China) Securities Company Limited, according to the letter from Chief Executive David Solomon and two other senior executives.
The change "represents a significant commitment to and investment in China," they wrote.
"This focuses on growing and strengthening our existing China businesses, expanding our addressable market and investing in talent and technology.
"These efforts coincide with ongoing reforms underway in China’s capital markets, continued robust economic growth and the expanding needs of increasingly sophisticated clients."
Wassim Younan, Goldman Sachs banker who built Middle East business, to retireGoldman Sachs’ head of the Middle East and North Africa (MENA), Wassim Younan, who built the US bank’s business in the region, is retiring after ... Economy
Coronavirus: Goldman Sachs sees US economy shrinking 4.6 percent in 2020Goldman Sachs Group Inc. economists revised down their estimates for the US economy this quarter, but predicted it will be back on track in September ... Coronavirus
National mask mandate could save coronavirus economic fallout, Goldman Sachs saysA national mask mandate could be a way for the United States to address the latest coronavirus surge while also protecting the country’s economic ... Coronavirus