Chengdu ladies take cosmetic comfort in brands
China to curb steel exportsChina to allow foreign banks to form JVs with local brokerages
2007/10/03 17:36 | by SamChan ]
China plans to unveil new provisions by the end of this year that allow a small number of foreign investment banks to form joint ventures with domestic securities companies, according to senior government officials and banking executives.
Chinese authorities are ready to start a pilot operation that allows some foreign banks to acquire no more than 20% stake in Chinese securities companies, according to sources.
Under the revised provisions, foreign banks can set up new joint ventures with local partners and will be allowed to hold no more than 33% of the shares.
The new provisions will formally end a two-year grace period so that foreign investments in China's securities industry were suspended and local companies were given more time to prepare for greater competition.
When interviewed by the Financial Times, Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC) did not comment on the details of the policy. However, he said, in the second half, China will resume the approval of setting up new securities companies and China will gradually open up the securities industry.
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