By Xinhua
Dalian (China) : China will resume approval of joint ventures with foreign securities firms now that rectification of securities firms has been completed, Shang Fulin, the chairman of China Securities Regulatory Commission (CSRC), said.
“Allowing foreign capital into China’s securities business will help raise the capabilities of the whole industry,” said Shang, adding that the commission is engaged in research on the resumption.
Foreign capital can enter China’s securities market by setting up branch companies, cooperating with investment banks, or acquiring shares in licensed securities firms in China, Shang said.
He made the remarks while addressing a seminar on China’s capital market at the Inaugural Annual Meeting of the New Champions hosted by the World Economic Forum in China’s northeastern coastal city of Dalian.
Opening up domestic securities market is part of the commitment along with China’s accession to the World Trade Organization (WTO) in 2001.
According to the commitment, foreign institutions are allowed to establish joint ventures with Chinese partners and handle securities and fund business in China. Foreign funds shall not exceed 33 percent of the joint venture’s shares in the first three years of WTO accession. And the figure shall not go over 49 percent three years after the WTO membership.
The approval of new joint securities ventures was suspended in 2004 when the CSRC kicked off an overhaul of the country’s securities dealers. The campaign concluded at the end of August this year.