Core Viewpoint - UBS has received approval from the China Securities Regulatory Commission to become the sole shareholder of UBS Securities, marking a significant step in its long-term strategy in the Chinese market [1][2]. Group 1: UBS's Strategic Moves - UBS acquired a 20% stake in UBS Securities in 2006 for 1.7 billion RMB, focusing on the full license advantage of Beijing Securities [2]. - The company gradually increased its stake to 51% in 2018, 67% in 2022, and now achieves full ownership, demonstrating a nearly 20-year tailored development of a fully licensed securities firm [2]. - The growth path of UBS Securities is described as difficult to replicate, with each key decision being aligned with the group's strategic focus and collective efforts of its employees [2]. Group 2: Integration and Performance - In Q1 2023, UBS's Asia-Pacific business recorded its strongest performance since acquiring Credit Suisse, with asset management in Asia surpassing $900 billion, significantly driven by contributions from mainland China and Hong Kong [3]. - The integration of UBS and Credit Suisse in China is crucial, as both banks have overlapping operations, aiming for a synergistic effect [3]. - The merger is expected to enhance UBS's influence and client recognition, while also ensuring a smooth transition for strategic partners and employees [3]. Group 3: Future Business Strategy - UBS aims to leverage its full license advantage to provide comprehensive service solutions to clients, enhancing its integrated capabilities in a highly regulated market [5][6]. - The establishment of various collaborative teams within UBS is intended to create a seamless multi-business cooperation chain to meet diverse client needs [6]. - UBS has been actively involved in bringing foreign investors into China since obtaining QFII status in 2003, participating in significant IPOs and financing projects [6][7]. Group 4: Policy Alignment and Market Outlook - The company emphasizes the importance of a stable and transparent regulatory environment for foreign institutions operating in China [7]. - UBS is committed to aligning its strategies with domestic policies to stimulate economic growth and encourage long-term investments [7]. - The firm is well-prepared to capitalize on emerging business opportunities in the context of increasing foreign financial institution activities in China [8].

Core Viewpoint - The performance of foreign securities firms in China showed overall improvement in 2024, with increased revenues and a return to profitability for many, although some firms still reported losses [2][3]. Financial Performance - In 2024, foreign securities firms achieved total assets of 50.71 billion yuan, a 10.2% increase from the previous year, with total operating income reaching 7.98 billion yuan, up 13.7% year-on-year, and net profit of 430 million yuan, marking a return to profitability [3]. - Goldman Sachs (China) led the performance with a net profit increase of 158% to 498 million yuan, while JPMorgan Securities reported a net profit of 259 million yuan, both achieving over 100% year-on-year growth [3][5]. - UBS Securities also saw significant growth, with a net profit of 150 million yuan, a 693% increase compared to 2023 [3]. - Morgan Stanley Securities turned a profit of 18 million yuan in 2024, benefiting from growth in investment banking [5]. Business Segmentation - Goldman Sachs (China) reported operating income of 1.841 billion yuan, a 20% increase from 2023, with net profit of 498 million yuan, a 158% increase [4]. - The breakdown of Goldman Sachs' business showed a 57% increase in brokerage fees to 871 million yuan, while investment banking revenue dropped by 97% to 477,500 yuan [4]. - JPMorgan Securities achieved revenue of 965 million yuan, a 27.37% increase, with brokerage fees also growing, but investment banking fees saw a significant decline [5]. - UBS Securities reported over 1 billion yuan in revenue, with brokerage fees netting 556 million yuan [6]. Losses Among Some Firms - Several foreign securities firms reported losses in 2024, including Nomura Orient International Securities, Daiwa Securities, Credit Suisse, DBS Securities, and Standard Chartered Securities [4]. - DBS Securities had revenue of 59.41 million yuan but reported a net loss of 169 million yuan, while Daiwa Securities saw revenue drop to 47.26 million yuan with a net loss of 135 million yuan [7]. - Standard Chartered Securities, after starting operations in March 2024, reported revenue of 20.5 million yuan and a loss of 78 million yuan [8]. Foreign Investment Landscape - Foreign firms play a crucial role in China's securities industry, with ongoing developments in establishing new firms and increasing capital [9]. - Currently, there are five wholly foreign-owned securities firms and seven joint venture firms with foreign control, with some firms awaiting approval to enter the market [9]. - Recent developments include the opening of BNP Paribas Securities in Shanghai and UBS Securities transitioning to a wholly foreign-owned entity [9].