Deutsche Bank Fets China OK for Share Deals

HONG KONG -- Deutsche Bank AG has become the latest foreign bank to receive approval for its Chinese joint venture to underwrite and sponsor deals in China's securities market.

Under the terms of the agreement approved by the China Securities Regulatory Commission, Shanxi Securities Co. will hold 66.7% of the venture and Deutsche Bank will hold the rest. The venture, named Zhong De Securities Co., will underwrite and sponsor the listing of yuan-denominated A shares, foreign currency-denominated B shares, and bonds, Deutsche Bank said Tuesday.

In late December, Credit Suisse Group said its brokerage joint venture with Founder Securities Co., which was set up in early 2008, had received a similar approval.

Until Credit Suisse and Deutsche Bank got their go-ahead, Goldman Sachs Group Inc., UBS AG, CLSA Asia-Pacific Markets and Morgan Stanley were the only global investment banks with securities platforms in mainland China.

(WSJ)