Goldman seeks control of Chinese JV

Bloomberg

Goldman Sachs Group Inc. sought regulatory approval to buy a majority stake in its investment banking joint venture in China, following rivals including UBS Group AG and setting the stage for eventually gaining full control.
Goldman has applied to boost its stake in Goldman Sachs Gao Hua Securities Co. to 51% from 33%, a spokesman said. Beijing Gao Hua Securities Co., controlled by businessman Fang Fenglei and Legend Holdings, currently owns 67% of the JV, which focuses on equity and debt capital markets and mergers advisory.
Taking full control of its China business would bring the New York-based firm closer to former Chief Executive Officer Lloyd Blankfein’s vision of being “one Goldman” in all markets. Goldman plans to eventually move employees and businesses from Beijing Gao Hua into Goldman Sachs Gao Hua, said a person with knowledge of the matter who asked not to be identified.
While Goldman doesn’t hold a stake in Beijing Gao Hua, it has been negotiating with Fang for years over how to structure its business in China once regulators permit overseas firms to take majority stakes in local JVs. That milestone finally arrived last year, and competitors including UBS and JPMorgan Chase & Co. have already moved to take advantage.
Beijing Gao Hua focuses on sales and trading and investment management. Folding its operations into Goldman Sachs Gao Hua would give the US firm a footprint in China that more closely resembles how it operates in other markets. China has the world’s second-largest capital market, underscoring its appeal to overseas players.
China said last month it will bring forward plans to remove foreign ownership limits on financial companies to 2020, as it speeds up efforts to open the $44 trillion industry to international competition.

Goldman Plans Hiring Spree in Trading
Goldman Sachs Group Inc.’s trading division is planning its biggest hiring spree in years. The catch? The entire effort is focused on coders, a sign of where Wall Street is headed.
The firm is looking to add more than 100 engineers for tech-related roles on the trading floor in the coming months, according to Adam Korn, co-head of engineering in the trading division. Goldman plans to raid its rivals in the tech and finance industries, with most of the new positions to be based in New York and London.
“You are going to see us very actively in the marketplace going after this kind of talent,” Korn said. “Historically, engineers were not seen as a part of the business. That’s obviously changed.”

The firm is focused on adding people who can respond to the demands of trading partners seeking to automate, Korn said.