China releases rules to open securities sector to foreign investors

China has released new management rules on foreign investment in the securities sector as the government takes steady steps to open its financial sector wider.

[File photo: Chinanews.com]

The revised rules released by the China Securities Regulatory Commission (CSRC) allow foreign investors to take a controlling stake in joint-venture securities firms, and promise to gradually expand the business scope of such firms.

China will equalize foreign investors' equity shares in listed and unlisted securities companies, according to the rules, which also set qualification requirements for overseas shareholders.

Following the release of the new rules, the CSRC said it will update related administrative approvals to help eligible foreign investors apply to set up companies.

The measures are in line with plans announced by authorities at the Boao Forum for Asia annual conference earlier this month.

As part of the country's broader opening-up push, China will encourage foreign investors to enter its trust, financial leasing, auto finance, money brokerage, and consumer finance sectors, a move that will take effect before the end of this year, China's central bank governor Yi Gang said at the conference.