(Yicai Global) Sept. 3 -- Credit SuisseGroupis negotiating withFounder Securities,theChinese shareholderintheirjoint venture securities trading firmCS FounderSecurities, and regulators onraising its shareholding in the JV firm to 51 percent from 33 percent. The company does not rule out further increasesin the future.

Credit Suisse has been reorganizing andnowwishes to increaseitsinvestment in fieldswith the potential forsufficient funds, declining risk exposure andrising profits,said Credit Suissechief executiveTidjane Thiam in an exclusive interviewwithYicai Global on Aug. 31. Increasingitsshareholding ratioin the JVis part ofthecompany's planin China,he added.

Credit SuissewillincreaseitsinvestmentinCS Founderina non-disclosedagreement, after which it willupits holding to 51 percent from 33 percent to become controlling shareholder,Beijing-basedFounder Securities announced in June.Ithasabandonedits ownplannedcapital increase,and will seeits stake fallto 49 percent from 66.7 percent, per the announcement.

Founder Securities'withdrawal ascontrolling shareholderwillalso resolve theproblem ofhorizontal competition between CS Founder and Founder SecuritiessubsidiaryChina Minzu Securities.

The companyhasnot decided the specific scheduleforcompleting theincreaseasitneedstoliaise with Founder Securities and CS Founder, Thiamsaid. Credit Suissehas achievedprogress afteritsthree-year reorganization andnowhas theability and willingness toraiseitsinvestmentintarget markets. China is a key one, theZurich, Switzerland-headquartered firmbelieves.

ManyJVsecurities traders need time to increase theirshareholdings andconsider various factors such asappropriate price,means ofcommunicatingwith regulators,andfuture businessplansand recruitment, insiders told Yicai Global.

Short-term business expansion in China may dilute the return on equity of foreign banks, some believe, butThiamisunconcerned overthisas he thinks thatenlistinglocal talentisthetruekeytoexpanding in China.

Credit Suisse, Nomura Securities and JPMorganChasehave allannounced theirsubmission ofapplicationsto China Securities Regulatory Commissionto set upforeign securitiesJV firmsin which theyplannedto holda51 percent stake.

Editor: Ben Armour