Goldman Sachs has declared that its principal business entity in China, formerly known as Goldman Sachs China Securities LLC, has received approval to officially change its name to Goldman Sachs (China) Securities LLC.
"The name change signifies a new milestone for Goldman Sachs' operations in China, in line with its ongoing strategy to become a leading international investment bank in the country," Goldman Sachs stated. The announcement of the name change follows shortly after Goldman Sachs secured full ownership of its main Chinese business, which previously functioned as a joint venture. The transition to a unified entity under the new name is intended to provide Goldman Sachs with a more distinct brand identity in China, consistent with its global presence.
Goldman Sachs first entered mainland China in 1994 and reportedly maintains offices in Beijing, Shanghai, and Shenzhen.
Evolution from Joint Venture to Wholly Foreign-Owned Enterprise
As China's capital markets have progressively opened up to international participation, Goldman Sachs' business in China has transitioned from a Sino-foreign joint venture to a wholly foreign-owned enterprise.
In March 2020, the China Securities Regulatory Commission ("CSRC") approved the change of the foreign shareholder of Goldman Sachs from Goldman Sachs (Asia) LLP to The Goldman Sachs Group, Inc. ("The Goldman Sachs Group"), and the foreign shareholder increased its stake in Goldman Sachs to 51%.
In April 2021, Goldman Sachs entered into an equity transfer agreement with Beijing Gaohua Securities Company Limited ("Beijing Gaohua"), under which Goldman Sachs transferred 100% equity interest in Qiankun Futures Company Limited ("Qiankun Futures") held by Beijing Gaohua. In May 2021, Qiankun Futures submitted an application for an equity change to the CSRC, which was accepted.
On June 7, 2021, Goldman Sachs established the Shanghai Securities Underwriting and Sponsoring Branch of Goldman Sachs Securities Limited in Shanghai.
On July 5, 2021, the Beijing Securities Regulatory Bureau ("BSRC") issued the "Reply of Approval for Changing the Business Scope of Goldman Sachs Securities Limited," approving an expansion of Goldman Sachs' business to include securities self-dealing, securities brokerage, securities investment consulting, and the distribution of financial products.
On July 28, 2021, the CSRC approved Goldman Sachs to engage in alternative investment business, limited to participation in the follow-on investment of the Science and Technology Innovation Board ("STB") and the Growth Enterprise Market ("GEM"), through the acquisition of Beijing Goldman Sachs Investment Management Company Limited ("Goldman Sachs"). On August 3, 2021, Goldman Sachs acquired Goldman Sachs and held 100% of Goldman Sachs' equity.
On October 18, 2021, Goldman Sachs completed the regulatory filing of the 100% equity interest in the company held by The Goldman Sachs Group. On November 11, 2021, Goldman Sachs completed the registration of the change of equity interest with the Market Supervision and Administration Bureau (for industry and commerce), making The Goldman Sachs Group the sole shareholder of Goldman Sachs.
On December 22, 2021, Goldman Sachs entered into a Business Transfer Agreement with Beijing Gao Hua, agreeing to transfer all of Beijing Gao Hua's existing businesses to Goldman Sachs.
On May 31, 2022, Goldman Sachs was granted the License to Operate Securities and Futures Business by the CSRC for the addition of securities brokerage, securities investment consulting, securities self-dealing, and the distribution of financial products to its business scope.
In June 2022, Goldman Sachs completed the industrial and commercial establishment registration for the Beijing Yinglan Securities Business Department, Shenzhen Center 4th Road Securities Business Department, and Shanghai Pudong New Area Century Avenue Securities Business Department. In August of the same year, all three business departments obtained the License to Operate Securities and Futures Business.
On February 18, 2023, as per the business reorganization plan of Goldman Sachs China, the company and Beijing Gaohua completed the business migration work. The original business of Beijing Gaohua, including securities self-management (with the bond self-management business having been migrated to the company in 2021), securities brokerage, securities investment consulting, and the distribution of financial products, as well as related customer relationships, systems, and personnel, were further migrated to Goldman Sachs. The business migration and overall undertaking have been successfully completed, with all former businesses of Beijing Gaohua now under the purview of Goldman Sachs.
On June 28, 2023, Goldman Sachs China officially changed its name to Goldman Sachs (China) Securities Limited.
According to Goldman Sachs' 2022 annual report, as of the end of that year, Goldman Sachs (China) Securities LLC had 155 employees, 55% of whom were engaged in investment banking.
In 2022, the group's operating revenue was RMB 583 million, a 3% decrease from 2021, while the net profit was RMB 82 million, marking a 633% increase from the previous year. The company's operating revenue for the year was RMB 612 million, a 16% decrease from 2021, with a net profit of RMB 108 million, up 33% from 2021.
During the fiscal year 2022, Goldman Sachs acted as a co-lead underwriter for one A-share initial public offering on the SGX-STEM board and four A-share private placements, and served as the exclusive sponsor for one of the A-share private placements. Additionally, Goldman Sachs China also acted as the exclusive placing agent for three A-share block trades.
Goldman Sachs stated that in 2023, the company will continue to seek support from relevant regulatory authorities, actively expand its financing channels, raise capital through income certificates, and other means to establish a sound and reliable financing structure. This effort aims to effectively enhance the company's liquidity risk resilience to support greater business development.
