Goldman Sachs Cleared to Own All of China Unit

Chinese regulators approved Goldman Sachs Group Inc.’s application to take full ownership of a key local unit, another step in China’s gradual opening of its financial system to major players from the U.S. and elsewhere. Goldman in December 2020 sought approval to increase its stake in a domestic Chinese business that it has co-owned since 2004. According to a story in The Wall Street Journal, the New York-based bank said that China’s financial markets regulator, the China Securities Regulatory Commission, had given its assent. The unit, Goldman Sachs Gao Hua Securities Co., will be renamed Goldman Sachs (China) Securities Co. Goldman’s wholly owned subsidiary will house most of the bank’s operations in China, including investment-banking functions such as merger advice and securities underwriting, and other business lines including trading and wealth management. As part of the reorganization, Goldman has said that onshore businesses owned by its joint-venture partner, Beijing Gao Hua Securities Co., would be transferred to the unit.