China paves way for brokers’ expansion


SHANGHAI: China's top stock watchdog said yesterday it will support domestic brokerages that find strategic partners and go public, as the sector returns to profitability more than two years after an overhaul of the troubled industry. 

Beijing has so far only allowed foreign participation in its battered brokerage sector on a piecemeal basis, with each deal structured differently, to the frustration of global financial giants eager to tap China's US$2 trillion of personal savings. 

“Support will be given to qualified securities companies to raise funds through initial public offerings and private placements, and to supplement their capital by introducing strategic investors,” state media quoted China Securities Regulatory Commission chairman Shang Fulin as saying. 

Shang did not identify any potential investors. 

Foreigners are now restricted to a single 20% stake in an existing domestic broker or a 33% stake in new joint ventures. Foreign players such as JPMorgan are lobbying Beijing to lift the limits. 

Last September, Switzerland's UBS AG unveiled plans to invest 1.7 billion yuan (US$212mil) for 20% of Beijing Securities, becoming the first foreign company to buy into a Chinese brokerage and winning de facto management control. – Reuters  

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

Fall in glove stocks offsets banks' rally
Norway's Seadrill writes down US$2.9bil on its oil rigs
TM ONE introduces new brand strategy and enhanced website
Petronas inks agreement with Sarawak Energy to purchase power supply
PPB Group plans to expand grains, agribusiness segment across the region
Bank Negara maintains OPR at 1.75%, growth to improve from 2Q
Khazanah posts RM2.9b profit, dividend of RM2b for govt
GSC purchases MBO Cinemas' assets to strengthen leadership position
Lotte Chemical declares 3.27c dividend for FY20
Tenaga expands Asean RE footprint with Vietnam foray

Stories You'll Enjoy


Vouchers