China launched a new rule allowing foreigners to own a majority in domestic securities firms as it bids to open its financial market further.
The China Securities Regulatory Commission raised the ceiling on foreign ownership of a Chinese securities firm to 51 percent from a previous 49 percent, according to a statement published on its website. The change takes immediate effect. Step by step, China is opening its financial sector to overseas competitors.
Open Door Ahead
Global firms have been reluctant to invest in the ventures without being allowed to control the companies, and some have even moved to exit their holdings in recent years. The Chinese watchdog launched a public consultation on its plan in March, following criticism from the U.S. and other trading partners.
China’s deputy finance minister, Zhu Guangyao, in 2017 said his country's financial services sector would be almost entirely open to foreign players within five years.
Swiss Endeavors
Swiss banks Credit Suisse and UBS have both said they would like to increase the stakes in their Chinese joint ventures. Credit Suisse owns a third of Credit Suisse Founder Securities (CSFS), the Beijing-based joint venture established by Founder Securities and Credit Suisse in 2008.
