The securities regulator of China has introduced new rules, which will enable foreign investors to own majority stakes in local securities firms.
Under the new rules, the ceiling on foreign ownership in securities firm in China has been raised from 49% to 51%, with immediate effect.
At the same time, joint-venture securities companies will now be allowed to apply for securities-related business licenses.
The rules will also equalise the caps on foreign ownership in listed as well as unlisted securities firms.
“According to the new rule, the aggregate foreign ownership in any listed domestic securities company shall conform to “not exceeding the overall opening-up commitment of the Chinese domestic securities industry”,” the regulator said.
The watchdog further said that the foreign shareholders should have good international reputation apart from good scale, revenue, and profit in the last three years.