Credit Suisse in Chinese venture

Swiss bank Credit Suisse has won approval from regulators to set up a securities joint venture in China.

It will underwrite domestic stock and bond offerings, and joins a handful of foreign investment banks with domestic joint ventures in China.

Credit Suisse will own one-third of its Beijing-based joint venture with China's Founder Securities.

The backing is the first by the China Securities Regulatory Commission since new rules were adopted in December.

Founder Securities Chairman Lei Jie is chairman of the joint venture. Neil Ge, managing director at Credit Suisse's investment banking representative office in Shanghai, while be chief executive officer of the venture.

In April Credit Suisse reported a large loss for the first three months of the year, hit by its exposure to the credit markets.

The bank made a net loss of 2.1bn Swiss francs ($2.1bn; £1.0bn) after writing down 5.3bn Swiss francs in mortgage securities and big buyout loans.

Rivals UBS and Goldman Sachs are among other foreign investment banks with joint ventures in the Chinese market, while Morgan Stanley owns a stake in mainland bank China International Capital Corporation.

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