UBS Futures Co. goes live in China
UBS Securities in China holds 95.42% of Shanghai-based UBS Futures
UBS Futures Co., Limited (UBS Futures China) which is 95.42%-owned by UBS Securities Co. Limited (UBS Securities China), has been officially established to provide futures brokerage services in China, targeting institutional investors.
Following the granting of approval by the regulator for UBS Securities to acquire a majority shareholding in Shanghai Pumin Futures Brokerage Co., Ltd, the transaction has recently been completed. Located in Shanghai, the new entity is named UBS Futures Co., Limited, which has a registered capital of RMB120 million. The company is currently engaged in commodities futures broking, and as the next step, will expand into financial futures brokerage services.
Yang XIA, Head of Equities, UBS Securities China and Chairman of UBS Futures China, said, ”Our China Equities business has a very strong position in the secondary market in China. We are a market leader in QFII and RQFII trading and electronic trading businesses. We are committed to offering the most comprehensive range of services to both our domestic and overseas clients. Making available a futures brokerage service is a critical step to realizing this goal.”
Yang XIA added, “UBS Securities is the first foreign invested securities firm in China with licenses to conduct a full range of securities businesses. We are excited to expand into the futures brokerage market which has strong growth potential. As pointed out at the third plenum of the Party Congress, the Chinese government encourages financial innovation and aims to build a multi-layered financial market with more products. We expect new futures products to be introduced to the market soon.”
The Hushen 300 Index, China’s first financial futures product launched in April 2010, registered trading volumes for the year of more than RMB41 trillion, representing 26.5% of the volume of all futures products. The financial futures market has grown exponentially since then. In 2013, the trading volume including the newly introduced treasury futures, reached RMB141 trillion, or 52.72% of the total futures products trading volume.
Notes for editors
UBS Securities Co., Ltd
UBS Securities Co. Limited (UBS Securities) is the first foreign invested securities firm in China with full licenses to conduct businesses including securities brokerage, securities investment consultancy, financial advisory related to securities trading and securities investment activities, securities underwriting and sponsoring, securities proprietary trading, securities asset management and distributing financial products.
The company was officially registered in December 2006 with a registered capital of RMB1.49 billion. It was established through the restructuring of Beijing Securities. There are currently six shareholders: UBS AG (20%), Beijing Guoxiang AMC (33%), Guangdong Provincial Communication Group Co., Ltd (14.01%), COFCO (14%), China Guodian Capital Holding (14%), and IFC (4.99%).
UBS-S has five business groups -- Investment Banking, Equities, Fixed Income, Wealth Management and Asset Management.