CSRC headquarters in Beijing
CSRC headquarters in Beijing

China Plans Easing Foreign Holding

China Plans Easing Foreign Holding

China plans to allow global banks to take a stake of up to 51% in their onshore securities ventures for the first time and tie up with local non-financial firms, people familiar with the matter said.
The move, if implemented, would form a key part of China’s pledge to ease foreign ownership curbs and would allow banks including Credit Suisse, Goldman Sachs, JPMorgan and UBS to bolster their presence in securities business–from underwriting to trading—in the world’s second-largest economy, Reuters reported.
Currently, western banks can only own up to 49% of their Chinese securities joint ventures. That lack of control and limited contribution to revenue has long been a source of frustration.
The plan to ease ownership restrictions comes as Beijing faces mounting pressure from western governments and business lobbies to remove investment barriers and onerous regulations that hobble foreign firms from operating in its markets.
China Securities Regulatory Commission officials have informally allowed some foreign banks to work on their onshore strategies with the planned easing of equity holding restrictions in mind, two of the people said.
The details of the plan to give majority control to foreign banks are expected to be finalized and announced once approved by the state council, they said, declining to be named due to the sensitivity of the issue.
News of Beijing’s possible easing of ownership restrictions in the securities sector comes as US President Donald Trump is set to visit China as part of his five-nation Asia trip.
Trump’s visit to China, which starts on Wednesday, comes amid frustration in parts of the US business community, including finance, over discriminatory Chinese policies and market access restrictions in various sectors.
The CSRC, which has been encouraging foreign investment in its bond and stock markets as part of broader efforts to deregulate capital markets, did not immediately respond to an emailed request for comment on Tuesday.
“We continue to evaluate viable options to strengthen our position in China in order to better serve our clients,” said a spokeswoman for JPMorgan, which in December sold its 33% holding in a China securities venture to its local partner.
JPMorgan, whose other financial services in China include corporate banking and asset management, is in talks to set up a new partnership in China, people with knowledge of the matter have previously told Reuters.

Short URL : https://goo.gl/jQWckW
  1. https://goo.gl/4kmwao
  • https://goo.gl/M4F6gb
  • https://goo.gl/C5wePE
  • https://goo.gl/VSGrdf
  • https://goo.gl/J8HfDg

You can also read ...

Poland to Maintain Solid Growth
Polish economy’s all significant macro fundamentals appear...
King Khaled International Airport
Saudi Aramco may have grabbed the biggest headlines, but the...
Zimbabwe is in arrears of nearly $1.8 billion  to the World Bank and ADB .
The International Monetary Fund Thursday said it was ready to...
While the tariff conflict may still be in its infancy,  global trade growth rate has almost halved.
The global economy will continue to expand strongly in the...
Wells Fargo Will Cut Workforce
Wells Fargo & Co said on Thursday it would reduce its...
Imran Khan Says Economic Revival a Priority
Pakistan Prime Minister Imran Khan on Thursday said that the...
Global Stocks Hit 6-Month High
World shares hit their highest levels in more than six months...
Premier Li Keqiang has  voiced confidence in China’s ability to overcome obstacles.
Chinese officials are shrugging off warnings that the trade...

Add new comment

Read our comment policy before posting your viewpoints