Others News
- Govt. to lift ban on brokerage ventures
Date: 25-Sep-2007 Sources: (Shenzhen Daily)
FOREIGN investment banks will be able to establish joint ventures with securities firms in China by the end of the year, the Financial Times reported yesterday.
The policy follows China's promise at the last round of strategic economic talks with the United States in May to implement the change amid foreign frustration at being effectively shut out of China's booming stock markets.
Chinese authorities will launch a pilot program permitting a few overseas firms to take 20 percent stakes in existing domestic brokerages, the newspaper reported, citing senior government officials and banking executives.
Under the revised regulations, foreign investment banks would be allowed to own up to 33 percent of a new securities joint venture with a local partner, officials said.
China said last year that approvals for new domestic and foreign-invested brokerages had been suspended to allow the troubled industry time to prepare for overseas competition.
But China agreed to remove barriers on the entry of new foreign securities firms and resume licensing securities companies, including joint ventures, in the second half of 2007.
But an official at the China Securities Regulatory Commission said yesterday there was no timetable for the release of the rules.
Sponsor Results:
