Others News
- Approval of brokerage JVs to resume
Date: 7-Sep-2007 Sources: (Shenzhen Daily)
THE securities regulator said Thursday it will resume approving new brokerage joint ventures, Xinhua reported, reopening a channel for multinational companies to tap into the fast-growing local capital market.
Shang Fulin, chairman of the China Securities Regulatory Commission, told the World Economic Forum in Dalian that licenses for new joint ventures would mainly be granted in the investment banking sector.
Foreign investment banks with joint-venture Chinese brokerages that can underwrite A-share offerings include only UBS AG, whose joint venture is called UBS Securities, and Goldman Sachs Inc., whose venture is Goldman Sachs Gao Hua Securities Co.
Morgan Stanley was the first foreign investment bank to set up a brokerage joint venture in China, but later reduced its role to that of a passive investor in China International Capital Corp.
Late last year, China's securities regulator halted approvals of joint ventures between foreign companies and Chinese investment houses, aiming to help the domestic brokerage industry recover from a cyclical slump.
In another development, Shang said that technical preparations for the launch of stock index futures are complete and trading will begin when conditions are ripe. He said the first corporate bond to be issued under the supervision of his agency will come to market soon.
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