DBS Group Holdings has received approval from the China Securities Regulatory Commission (CSRC) to establish its joint venture securities company, DBS Securities (China) Limited.

DBS Securities, which the DBS Group will have a controlling stake in, will engage in the brokerage business, securities investment consulting, securities underwriting and sponsorship, as well as proprietary trading.

The company will be located in Shanghai, with a registered capital of RMB1.5 billion ($298.5 million).

The DBS Group holds a 51% stake in the joint venture company. Its other shareholders Donghao Lansheng Investment Management Co., Ltd., Shanghai Huangpu Investment Holdings (Group) Co., Ltd., Shanghai Huiyang Asset Management Co., Ltd., and Shanghai Huangpu Guidance Fund Equity Investment Co., Ltd, each hold 24.67%, 13.33%, 6.5%, and 4.5%, respectively.

According to a Sept 2 statement by DBS, the new securities company will be “an important part” of the group’s strategy in China.

“The ability to set up a securities company in China represents yet another key milestone, enabling us to make available the best of DBS’ capabilities and offerings, and provide customers in China with a full range of onshore and offshore financial services,” says DBS CEO Piyush Gupta.

"The establishment of DBS Securities will further support the long-term sustainable development of DBS Group in China and meet the changing needs of customers in multiple aspects. With the continuous expansion of DBS’ onshore business platforms, the Group is committed to providing more comprehensive financial services to Chinese customers,” adds Neil Ge, China head of DBS Group.

As at 11.27am, shares in DBS were trading 20 cents lower, or 1.0% down, at $20.67.