Fangda advises DBS Bank and BlackRock on major new China ventures

On June 7, 2021, DBS Group announced that DBS Securities (China) Co., Ltd. (“DBS Securities”), its newly established securities company in China, has obtained the securities business license from the China Securities Regulatory Commission and is now authorized to operate securities brokerage businesses, securities investment consulting businesses, securities proprietary trading as well as securities underwriting and sponsorship services. The registered capital of DBS Securities is RMB1.5 billion. DBS Bank Ltd., a Singapore incorporated financial institution, is the largest controlling shareholder (holding 51% of the total equity interests). In 2007, DBS Bank established DBS Bank (China) Co., which is one of the first bank subsidiaries established by foreign banks.

Fangda has been assisting DBS Securities in the preparation of its set-up since May 2020. This is the second strategic investment project in China in which we have advised DBS Group recently. DBS Group has made a public announcement in April 2021 that the investment by DBS Bank in Shenzhen Rural Commercial Bank, making DBS the largest shareholder in the bank with 13% of the total shares, has been approved by the Monetary Authority of Singapore and the China Banking and Insurance Regulatory Commission. Fangda represented DBS Group in this transaction.

On June 10, 2021, BlackRock CCB Wealth Management Co., Ltd. held an opening ceremony in Shanghai to formally launch its business. Blackrock holds a majority (50.1%) stake in this new joint venture wealth management company. The minority equity interests are held by China Construction Bank (40%) through Jianxin Wealth Management Co., its wholly-owned wealth management subsidiary, and Temasek (9.9%).

The joint venture combines BlackRock’s advanced expertise in international asset management, investment management and risk control with CCB’s advantage in domestic customer base and distribution channels. The company aims to serve China’s fast-growing wealth and asset management sector, offering sophisticated products and services to Chinese customers and to help facilitate the development of China’s real economy. Temasek will also contribute its experience and knowledge to create long-term value for this joint venture wealth management company’s future development. Fangda has been advising BlackRock on this strategic investment project from the start. This is the second strategic investment project in China in which we have advised BlackRock recently.

BlackRock also announced on June 11, 2021 that it has obtained the approval to launch its first wholly foreign-owned fund management company. Through this fund management company, Blackrock wishes to provide Chinese investors with personalized onshore investment products and solutions, and continue to develop its business and expertise in the local market.

In addition to the above investments, as China’s financial services sector continues to open up, Fangda’s Financial Institutions Group has assisted many international financial institutions to set up companies, on their M&A deals involving domestic financial institutions, as well as helping many financial institutions to obtain various financial licenses, including commercial banking, insurance, securities, futures, funds, wealth management, private banking, and commercial payments, among others. The leading partners included FANG Jian, Grace Yu, Siyuan Pan and Ada Zou.