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Goldman Sachs Gets Regulatory Approval for Fund Sales in China

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The Goldman Sachs Group, Inc. (GS - Free Report) has obtained regulatory approvals from the Beijing Bureau of China Securities Regulatory Commission to sell funds in China. This was first reported by Reuters.

The license was granted to GS’s China securities brokerage unit. This marks a significant step for the U.S. investment bank in the China market.

With this, Goldman Sachs has become the latest U.S. investment bank to get a financial license, which is a sign of Beijing's commitment to continue opening the sector to foreign companies.

The license to Goldman Sachs follows Morgan Stanely (MS - Free Report) , which received the final approval last month to begin a futures business in China through a newly established unit. The growing prospects for international financial institutions in China's sizable market are demonstrated by these licenses.

GS’s Efforts to Focus on IB & Trading Operations

Goldman decided to refocus on its core strengths of IB and trading operations while scaling back its consumer banking footprint. Hence, it undertook a major business restructuring initiative. In October 2024, Barclays finalized a deal to acquire Goldman’s General Motors credit card business. In the first quarter of 2024, GS completed the sale of GreenSky, its home-improvement lending platform, to a consortium of investors.

In the fourth quarter of 2023, Goldman sold its Personal Financial Management unit to Creative Planning. Goldman aims to cease unsecured loan offerings to consumers through its digital consumer banking platform — Marcus. In 2023, it sold substantially all of Marcus’s loan portfolio.

These moves are in line with Goldman's decision to focus on and grow core businesses, wherein it has showcased encouraging results, given its strong leadership position, wide scale of operations and exceptional talent.

Goldman’s Price Performance & Zacks Rank

Over the past six months, GS shares have gained 30.3% compared with the industry’s 24.4% growth.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Currently, Goldman Sachs carries a Zacks Rank #3 (Hold).

Goldman’s Peers Worth Considering

Some better-ranked stocks are Raymond James Financial Inc. (RJF - Free Report) and Bank of America Corporation (BAC - Free Report) .

Raymond James Financial’s earnings estimates for 2024 have been revised upward to $10.85 per share in the past 30 days. RJF shares have gained 36.1% over the past six months. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Bank of America’s 2024 earnings estimates have been unchanged at $3.27 per share in the past 30 days. BAC shares have gained 16.2% over the past six months. It currently carries a Zacks Rank of 2 (Buy).

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