22:07, 09-Mar-2018
China Opens Up Brokerage Sector: CSRC draft rules on foreign control of securities firms
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Now for a look at China's securities market. The China Securities Regulatory Commission on Friday unveiled draft rules on foreign control of Chinese brokerages. CSRC said the cap on foreign ownership in a Chinese securities firm would be increased to 51 percent. Then three years after the new rules take effect, the limit is scrapped altogether.
Meanwhile, the ceiling of total foreign ownership in a listed Chinese brokerage will also be raised to 51 percent. But a single foreign shareholder can't own more than 30 percent of a publicly traded brokerage through trading or negotiated transactions. The draft rules raised the bar for overseas investors, saying they must be financial institutions with good international reputations.