UBS Sells Stake In China Joint Venture To Comply with Local Regulations: Report
Portfolio Pulse from Lekha Gupta
UBS Group AG is selling a 36.01% stake in one of its securities joint ventures in China to comply with local regulations. The stake is being sold to Beijing State-owned Asset Management (BSAM) for $91.4 million. This move follows UBS's merger with Credit Suisse and aims to consolidate its operations in China. UBS shares are trading lower, down 1.99% premarket.
June 25, 2024 | 10:08 am
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NEGATIVE IMPACT
Investors can gain exposure to UBS through the Avantis International Equity ETF, which may be impacted by UBS's recent stake sale in China.
AVDE holds UBS shares, and the negative market reaction to UBS's stake sale in China could impact the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
The American Century ETF Trust Avantis Responsible International Equity ETF provides exposure to UBS, which is selling a 36.01% stake in a China joint venture.
AVSD holds UBS shares, and the negative market reaction to UBS's stake sale in China could impact the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
UBS is selling a 36.01% stake in a China joint venture to BSAM for $91.4 million to comply with local regulations. This move is part of UBS's strategy to consolidate its operations in China following its merger with Credit Suisse.
The sale of the stake is a regulatory requirement and part of UBS's strategy to consolidate its operations in China. However, the immediate market reaction is negative, with UBS shares trading lower.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100