CLSA Asia-Pacific Markets has been given a free hand to orchestrate its expansion on the mainland after its joint venture received two key licences yesterday from the China Securities Regulatory Commission (CSRC).
Shanghai-based China Euro Securities, a brokerage 33.3 per cent owned by CLSA and the balance by Hunan-based Fortune Securities, would be permitted to deal in A shares and to compile and distribute Chinese-language research reports as well as give advice to mainland investors, CLSA said in a statement.
The brokerage was the first Sino-foreign joint venture in which a Hong Kong-based group held 33.3 per cent to acquire a licence to handle the A-share broking business since December last year when the CSRC revised its rules on foreign ownership of brokerages, it said.
Last weekend, Switzerland's Credit Suisse became the first foreign firm since last December to be allowed to form a joint-venture brokerage with a mainland partner.
China Euro's licences were granted just ahead of the strategic dialogue between Beijing and Washington this week when the Americans are expected to pressure the mainland further to open up its financial sector.
'We very much would like to use our strength to help our joint venture grow domestically,' said Wu Changgen, CLSA chairman for China. 'The broking business represents a huge potential for future growth.'