UBS Sells Stake In China Joint Venture To Comply with Local Regulations: Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
0mins
Should l Buy UBS?
Source: Benzinga
- UBS Group AG Stake Sale: UBS is selling a partial stake in one of its securities joint ventures to Beijing State-owned Asset Management (BSAM).
- Founder Securities Sale: Founder Securities is selling its entire 49% stake in the joint venture for $122 million.
- Consolidation Move: The stake sale is part of UBS's consolidation efforts in China post-merger with Credit Suisse.
- Stake Details: UBS is selling a 36.01% stake to BSAM for $91.4 million, but it's unclear if it will retain the remaining shares.
- Regulatory Compliance: Chinese regulations require UBS to sell a stake due to ownership restrictions on majority-owned securities firms locally.
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Analyst Views on UBS
Wall Street analysts forecast UBS stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 39.700
Low
39.12
Averages
52.09
High
71.73
Current: 39.700
Low
39.12
Averages
52.09
High
71.73
About UBS
UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diverse Investment Options: UBS's ETRACS products cover various asset classes, including high dividend low volatility stocks, small caps, and preferred stocks, catering to different investor needs and enhancing the attractiveness of its product portfolio.
- Market Outlook: As demand for high-yield investments increases, UBS's ETRACS exchange-traded notes are expected to continue attracting investors, driving growth in the company's asset management sector, particularly in uncertain economic conditions.
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