Goldman Sachs and China have a lot in common. Both march to their own tune and are accustomed to getting their own way. Both are patient; but neither likes to be kept waiting.
That thought came to mind when the US investment bank said on December 8 that it was moving to acquire a 100% stake in its mainland China securities joint venture, Goldman Sachs Gao Hua (GSGH).
The details of the deal are simple enough.
Goldman will buy the 49% stake it does not already own in the JV it set up in 2004 with Beijing Gao Hua Securities, a domestic brokerage founded by erstwhile investment banking rainmaker Fang Fenglei and investment firm Legend Holdings.
All the New York bank’s onshore operations, including non-investment banking services such as wealth management and securities trading, will then migrate to a new wholly owned entity, to be called Goldman Sachs (China) Securities.
Green light
The deal is not...
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