Goldman lays groundwork for control in China onshore business

Hong Kong

AS CHINA gets ready to allow foreign banks to take majority stakes in local securities joint ventures, Goldman Sachs Group Inc has been quietly laying the groundwork for an onshore business in which it will have equity control.

Goldman Sachs's business partner in China, Fang Fenglei, and his associates are open to selling a controlling stake in their local joint venture (JV) to the US firm; and the parties are negotiating a structure, according to people with knowledge of the talks. A key hurdle to the plan was removed last Friday after China said that it would lift a 49 per cent ownership cap on such ventures.