Beijing to ease rules over securities firms
The China Securities Regulatory Commission (CSRC) is also contemplating a trial to allow Hong Kong, Macau and Taiwanese financial institutions to hold a stake of as much as 51 per cent in mainland securities firms in Shanghai, Shenzhen and other designated cities.
Hong Kong could benefit from a plan by Beijing to lower thresholds for the mainland's securities firms to establish overseas units in an effort to ease competition in the domestic industry.
The China Securities Regulatory Commission (CSRC) is also contemplating a trial to allow Hong Kong, Macau and Taiwanese financial institutions to hold a stake of as much as 51 per cent in mainland securities firms in Shanghai, Shenzhen and other designated cities.
"China is considering easing requirements to encourage more mainland securities companies to set up offshore units in Hong Kong," the Shanghai Securities News quoted CSRC official Ouyang Changqiong as saying. "Relevant easing policies have been amended after consultation, such as a drop in net asset requirement for Chinese financial companies."
He said the regulator would soon make an announcement.
Meanwhile, industry participants have been lobbying the watchdog for favourable terms when they venture overseas because the domestic capital market is crowded with competitors.
Yim Fung, the vice-chairman and chief executive of Guotai Junan International, a Hong Kong-listed mainland financial institution, said: "The discussion with the CSRC has been ongoing for some time. Facing tough operating conditions at home, market participants hope to expand in Southeast Asia."