China should let lenders get into brokerage, BOC’s Lian says

Taken together, China’s 131 brokers have assets that are equal to those of Goldman Sachs. They are also far from being full-service investment banks, counting on mom-and-pop traders across the country to contribute much of their revenue.

SHANGHAI: China should consider letting commercial banks foray into securities business, according to Bank of Communications Co. Chief Economist Lian Ping.

Lenders should be enabled to establish new securities firms or be allowed to acquire or merge with brokers, the official Shanghai Securities News reported, citing Lian’s speech at a forum in the city on Saturday. The capital of commercial banks would vault the country’s investment banking sector into a fast growth track, Lian said.