In a statement Goldman Sachs Group Inc said, it has entered into an agreement with its Chinese joint venture partner to wholly own the business.
The development marks Goldman Sachs as the latest foreign bank to take advantage of China’s opening up its financial sector midst U.S. pressure.
According to an internal memo issued on Tuesday, the process of boosting its stake in the joint venture with Goldman Sachs Gao Hua (GSGH) from 51% to 100% has been initiated with local regulators.
A spokesman for the bank confirmed the content of the internal memo.
In 2004, Goldman Sachs had set up its China securities JV with Beijing Gao Hua Securities, which was co-founded by veteran Chinese banker Fang Fenglei.
Unlike the bulk of its peers, Goldman had day-to-day operational control of its business, which offers investment banking services including bond underwriting, consulting on deals and equities.
Earlier this year in March, Goldman received final regulatory approval to raise its stake in its joint venture from 33% to 51%.
Full ownership will allow it to expand its operations in China’s multi-trillion-dollar financial sector.
“One hundred percent ownership of our franchise on the mainland represents a significant commitment to and investment in China, outlined in our China strategic plan,” reads the Goldman memo. “This focuses on growing and strengthening our existing China businesses, expanding our addressable market and investing in talent and technology.”