Alliances have long way to go in China

Comment

When China gained its membership in the World Trade Organization (WTO) in 2001, it promised to open its domestic securities industry to foreign capital. According to the promises, offices of foreign securities firms in China were allowed to become special members of the Chinese securities stock exchanges and to set up joint ventures to operate securities investment and fund management with a maximum stake holding of 33 percent.

Three years later, foreign stake holdings in a Chinese financial institution were allowed to reach 49 percent. As early as Dec 11, 2006, five years after China entered the WTO, the country had met all its commitments to open up its capital market, according to the China Securities Regulatory Commission.