Transfer of over 1.5 billion yuan! This "special background" brokerage is about to "transform"

UBS Securities' "second largest shareholder" initiates liquidation!

According to the Beijing Equity Exchange, Beijing State-owned Assets Management Co., Ltd. (hereinafter referred to as "Beijing State Assets") plans to publicly sell its 33% stake in UBS Securities, with a transfer base price as high as 1.537 billion RMB.

As of now, UBS Securities has two shareholders, one being UBS AG, and the other being Beijing State Assets, holding 67% and 33% of the shares, respectively.

So, who is the transferee? Currently, there is no public trading information.

UBS Group responded to Wall Street News: "UBS increased its stake in UBS Securities to 67% in 2022. As previously disclosed, the process for UBS to further increase its stake in UBS Securities to 100% is underway."

UBS Securities' identity will change

UBS Securities was formerly known as Beijing Securities, established in 1993. After a capital increase in 1999, it was effectively controlled by the Beijing State-owned Assets Supervision and Administration Commission, with one of the shareholders being Beijing State Assets, the aforementioned transferor.

In the early 2000s, many internal governance issues at Beijing Securities gradually surfaced, particularly concerning debts with institutions and individuals, with reported losses exceeding 100 million RMB.

By 2005, the Beijing government planned to introduce foreign institutions to restructure Beijing Securities, coinciding with the acceleration of international financial giants expanding into the Chinese market after China's accession to the WTO.

In 2006, UBS Securities was officially established, with shareholders including Beijing Guoxiang Asset Management Co., Ltd., UBS AG, China Jianyin Investment Co., Ltd., National Development Investment Corporation, and COFCO Group.

On November 30, 2018, UBS Group's shareholding reached 51%, making it the first foreign financial institution to gain controlling interest in a joint venture securities company in China through increasing its stake.

Since then, UBS Group's shareholding has gradually increased, currently reaching 67%. The market has expectations for UBS Group to fully control UBS Securities.

Transaction details revealed

According to public information, the base price for Beijing State Assets to transfer UBS Securities is 153,650,000 RMB, approximately 1.537 billion RMB.

The payment method is "one-time payment."

The intended transferee must pay a transaction deposit of 461 million RMB or an equivalent amount in foreign currency to the designated account of the Beijing Equity Exchange within 5 working days after obtaining confirmation of the transfer qualification (based on the time of receipt).

In addition, the information disclosure period for this equity transaction is from November 26 to December 23 of this year

UBS Securities Financial Data Exposed

This property transaction information also disclosed the financial status of UBS Securities.

The 2023 annual audit report data of UBS Securities shows: the annual operating income and net profit were 955 million yuan and 18.9108 million yuan, respectively.

As of September 30, 2024, the operating income for the year was 770 million yuan, with a net profit reaching 91.3927 million yuan.

It can be seen that UBS Securities' profit performance has significantly improved this year