 As China's economy grows, so will the profits for financial companies |
Swiss bank group UBS will invest $500m (�283m) in a partnership with Bank of China as it looks to tap into one of the world's fastest-growing economies. The firms want to develop their investment banking and securities business for local clients in China.
Foreign firms are being lured to China by its booming economy and a rapid increase in consumer spending power.
China, meanwhile, is keen to bring in outside expertise to develop its banking industry and cut bad debts.
Other banks and financial services companies have already moved in and earlier this year China's biggest lender sold a10% stake to Goldman Sachs, Allianz and American Express.
'Natural development'
UBS said it had been strengthening ties to state-owned Bank of China, the country's second-biggest lender.
"We regard this agreement as a natural development of our long-term relationship with Bank of China," said UBS chief executive Peter Wuffli.
"The combination of Bank of China's brand, distribution and customer base with UBS's products, services and experience will be powerful."
There also were unconfirmed press reports that UBS was looking to buy a 20% stake in brokerage firm Beijing Securities for $210m.
Not every deal goes smoothly, however, and there were also reports that Credit Suisse First Boston's attempt to buy a stake in China Construction Bank had fallen through.
One-Minute World News 
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