Nearly 17 years after setting up its joint venture in Beijing, Goldman Sachs is taking full control and — like Wall Street — doubling down in China.
Goldman Sachs announced in December that it will be taking full ownership of its Chinese securities joint venture. Credit: Richard Drew/AP Photo
In December 2004, Goldman Sachs struck an unusual deal to bolster its presence in China. The Wall Street investment bank agreed to “donate” $62 million to pay off the debt of a failed state-owned brokerage house.The money went into a fund that was supposed to compensate investors whose savings had been embezzled by the directors of Hainan Securities, a state-backed firm. In exchange, Beijing granted Goldman a license to operate a joint venture brokerage firm in China.
That new venture, Go
Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else.
A weekly curated reading list on China from Andrew Peaple.
A daily roundup of China finance, business and economics headlines.
We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.
Walmart should be in trouble in China, where its competitors are in retreat and its sourcing operations have been criticised by both Beijing and Washington. But the American retailer seems to have found a way forward in a difficult sector and remains one of the biggest benefactors of China-U.S. trade.
The Commerce Department wants to expand export controls to majority-owned subsidiaries of Chinese companies. That could trigger cascading effects — and challenges.
Navigate China's Business Landscape with Confidence.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OKPrivacy policy
