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Updated: 2005-12-30 11:14

Securities investment rules to change 

日前,由中国证监会起草的《证券公司监督管理条例(草案)》再次下发到各家证券公司征求意见。值得关注的是,随着证券行业对外资开放的临近,《草案》对于外方股东的资格条件有所放宽。首先,外方股东不仅可以是金融机构,还可以是金融机构的母公司。这样既符合引进外资的基本目的,又有利于减少操作上的障碍。另外,对于5%的比例限定,业内人士也认为这为非金融机构、非金融控股公司的境外战略投资者入股留下空间。

 

Securities investment rules to change
Securities investment rules to change

Formallyineligibleholding companies of foreign financial institutions can now invest in Chinese securities firms, thanks to a regulation under revision that aims to open the door to overseas investors.

Before China Securities Regulatory Commission made this move, only foreign financial corporations - not their parent companies - were authorized to invest in Chinese securities firms.

However, the rules still say that these institutions have to be in the securities business for more than 10 years, have good risk management and internal control systems and a good international reputation.

But with the new rule, the above requirements will not apply to smaller shareholders from overseas who want to invest less than 5 per cent into a Chinese securities companies.

There is no major change for foreign financial corporations that hold larger stakes.

"The move, by lowering the threshold for small shareholders, is aiming to provide more opportunities for overseas non-financial institutions and their holding companies to invest in securities," said Dong Chen, a researcher from China Securities.

Dong mentioned that currently foreign investors interested in domestic securities firms are mainly financial institutions that expect much more than a 5 per cent share. The draft also places regulations on domestic securities firms.

According to the draft, money must occupy at least two thirds of the firm's total registered capital. The move is said to be a safeguard against investors who use non-performing securities and creditor's rights to invest, which can often lead to bad quality assets from the start.

The draft declaredindependent board directorsshould occupy at least one third of the board's seats, increased from the "one fourth seat" rule in previous regulation.

It also extended the time for securities firms to find a commercial bank as their custodian to manage client's money by one year.

The government had originally ordered securities firms to find custodians at the end of 2006.

The China Securities Regulatory Commission will decide which commercial banks will have qualifications to be a custodian.

(China Daily)

 

Vocabulary:
 

ineligible:disqualified by law, rule, or provision(不合格的)

independent board director: (独立董事)

 

 
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