Goldman Sachs strikes Gold as it receives approval to take control of China unit
- Goldman Sachs confirmed that the group had received approval to take control of the China unit.
- The company aims to double its workforce in the region by increasing its staff strength to 600.
- The significant step towards expansion overseas comes amid spiking political tension in the region.
The American investment bank Goldman Sachs (NYSE: GS) strikes gold. The U.S. bank has successfully won approval, paving the way for the financial institution to take 100% ownership rights in the China unit.
The timing of the respective takeover is important
The approval to take over 100% ownership of securities of the joint venture in China comes when the government in China is cracking the whip of business organizations refusing to align with the government. However, the U.S. bank is optimistic about the outcome, so much so that it has announced to double its workforce in China. As part of a growth strategy chalked out by the bank, assets and wealth management will be ramped, and 600 will be the strength of the workforce.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Start of a new chapter for the bank
In an internal memo, David Solomon, John Waldron, and Stephen Scherr, the bank’s top executives, stated that the acquisition marks the beginning of a brand new chapter. The executives in the internal memo noted that the U.S. bank aims at long-term growth and is optimistic of success in the Chinese market.
U.S. lawmakers think otherwise
With diplomatic tensions between the U.S. and China escalating, lawmakers in the U.S. think otherwise. Restrictions on investments are in place, and sanctions are being imposed on selected Chinese officials. Thus, caution is sounded on investments made in China.
The U.S. bank is the owner of all its operations across Asia-Pacific
The latest approval from China makes Goldman Sachs the owner of all its operations across the Asia-Pacific region. With a decade-long brokerage alliance coming to an end, the U.S. bank, in 2006, became the owner of its financial services firm in India. Interestingly, the bank is the second firm from Wall Street to obtain 100% ownership of its onshore securities operations successfully.