HONG KONG (Sept 25): DBS Group chief executive officer Piyush Gupta said on Wednesday it is in the process of increasing its stake in a China securities joint venture to 91% from 51%.

The comments came a day after China introduced aggressive measures to prop up its ailing economy and capital markets.

The largest bank by assets in Singapore confirmed that it is the buyer of stakes up for sale by its Chinese JV partners, though the transaction is still pending regulatory approval.

The bank plans to maintain a 91% holding in the platform, as it sees its Chinese partners bringing value to the business, Gupta told reporters a briefing in Hong Kong.

DBS is the latest among a flurry of foreign banks such as JPMorgan and Morgan Stanley, which have moved to raise stakes in securities JVs in China, taking advantage of the country's foreign ownership cap.

Four Chinese shareholders of DBS Securities China auctioned off a total of 40% of the JV in July, with an asking price of 408 million yuan (US$58.15 million or RM240.35 million), according to information from Shanghai United Assets and Equity Exchange.

There has not been update about buyers or stake transfers since.

The move to raise shares in the China unit came as a slowing economy and sluggish markets squeezed the profitability of securities companies operating in China.

However, stimulus measures announced by Beijing on Tuesday have boosted prospects for securities companies, with shares of securities brokerages listed in Hong Kong surging in morning trade.

China's central bank said it's introducing a swap programme sized at an initial 500 billion yuan, which will allow funds, insurers and securities brokers easier access to funding in order to buy stocks.

"I'm positive that these measures of monetary stimulus, as well as the support [given] to the real estate market, are enough to stimulate and [restore] trust again," Sebastian Paredes, the bank's head of north Asia and CEO for Hong Kong, said at the briefing.

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