CSRC to lift restrictions on foreign investors

The China Securities Regulatory Commission (CSRC) has decided to gradually lift caps on foreign stakes in Chinese securities firms, thus those joint ventures will be allowed to broaden their business scope soon, said the securities regulator in a report on China capital market development released yesterday.

According to the report, the policy will last till 2020. Currently, foreign investors are only allowed to take a maximum of 33% stake in a brokerage joint venture, and cannot operate in China's security market independently.

CSRC has launched a series of new rules earlier this year, which modestly expanded the business scope of those joint venture brokerages.

International investment banks hails for the decision as many of them are keen to form securities joint ventures with their Chinese partners and to tap into the emerging market. Some of the leading investment banks, namely Morgan Stanley, UBS and Goldman Sachs have already set up JVs in China.

China is keen to increase foreign investment in its capital market and will be giving foreigners more investment options in China. The nation will also allow more foreign companies to list on China's bourses, said the report.