Establishment of Gao Hua Securities Approved; Goldman Deal Approved “In Principle”
September 9th, 2004The CSRC has approved establishment of Beijing Gao Hua Securities Company. The approval also states that the CSRC “approves in principle” Gao Hua’s establishment with Goldman Sachs Asia (高盛（亚洲）有限公司) of a foreign invested securities company (外资参股证券公司).
The shareholders of Gao Hua are as follows, each holding RMB 268,000,000 of the firm’s RMB 1.72 billion in registered capital.
Beijing Houfei Growth Enterprises Investments Company (北京厚丰创业投资有限公司)
Beijing Gaowang Growth Enterprises Investment Company (北京德尚创业投资有限公司)
Beijing Desheng Growth Enterprises Investment Company (北京德尚创业投资有限公司).
According to earlier news reports, Goldman Sachs has through loans indirectly provided most of the capital for Gao Hua and will consequently have through contractual mechanisms some kind of control rights over Gao Hua, and hence Goldman will have control over the now approved-in-principle venture Guo Hua will directly establish with Goldman, even though Goldman will under Chinese securities regulations be limited to owning only one-third of the shares in that venture. The CSRC’s approval provides no details, but states that loans form foreign sources should be registered and otherwise handled in compliance with China’s forex regulations.
The approval is dated August 10, but it was released on September 8 along with a batch of other CSRC approvals.
Since promulgation of the PRC Administrative Licensing Law, the CSRC has organized its website so that its numerous approval actions are provided according to various category (issuances, institutions (where the Goldman document is posted), listings, funds, futures, accounting, and overseas listings).