Cardiovascular Systems Rides on New Products Amid Tight Race
The Swiss bank — UBS Group AG UBS — has expressed interest in increasing majority stake in its Chinese securities venture with the submission of application to China’s securities regulator — The China Securities Regulatory Commission (CSRC), Bloomberg reported. This moves follows CSRC’s lessening restrictions on foreign ownership of brokerages announced earlier this year.
Notably, indicating their readiness to allow greater access to global banks into their financial markets, the securities regulator has set the month of June as deadline for foreign companies to increase majority stake to 51% in securities JVs, up from the existing ceiling of 49%. Regarding this, the CSRC detailed the guidelines and experience mandatory for foreign shareholders, last week, along with the scale of businesses which can be recognized.
Therefore, to explore opportunities for its investment banking, wealth and asset management operations in China, this Zurich-based bank targets to raise stake to 51%, up from the existing 24.99%.
Global investment banks’ expansion has been limited in China for the past few years due to restrictions imposed on ownerships. Therefore, with the easing out of boundaries for global banks and the growing Chinese economy, major foreign banks will be attracted to expand here. Apart from UBS Group AG, Morgan Stanley MS and Goldman Sachs GS are among the major brokerages likely to acquire majority stakes in their Chinese joint ventures.
Over the last six months, shares of UBS Group AG have decreased 3.1% compared with the 1.1% decline registered by the industry.
Currently, UBS Group AG carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-performing foreign bank includes Lloyds Banking Group PLC LYG, with a Zacks Rank #1. The bank has been witnessing slight upward estimate revisions for the last 90 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UBS Group AG (UBS) : Free Stock Analysis Report
Lloyds Banking Group PLC (LYG) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research