Chinese securities companies are further stepping up their overseas business this year, according to a report of China Securities Journal on Thursday.
On Oct. 12, two securities companies, China Galaxy Securities Co., Ltd. and China Securities Co., Ltd., announced they had received the green light from the China Securities Regulatory Commission (CSRC) to pilot certain overseas business.
The green light allows these two companies to invest their proprietary funds in exchange-traded financial products as well as other financial products or instruments targeted by the Qualified Domestic Institutional Investors (QDII), which are Chinese financial institutions investing in offshore stocks and bonds.
Additionally, they are allowed to sign a master agreement with domestic or overseas counterparties on the trading of over-the-counter financial derivatives.
At present, nine securities dealers in China hold such approval from the CSRC, with seven granted this year after none had been given in both 2016 and 2017.
Aside from striving to get approval for conducting the above business, Chinese securities companies with global ambitions are increasing their overseas presence via acquisitions.
In January, China Galaxy Securities Co., Ltd. purchased a 50-percent interest in the stockbroking joint venture CIMB Securities International Pte. Ltd. (CSI). Another Chinese company, Huatai Securities Company Limited, acquired AssetMark Financial Holdings Inc, a U.S. consultancy firm, in 2016.
Along with the expanding international footprints of these securities companies, the CSRC has taken corresponding measures to regulate their development.
In September, the CSRC issued a set of administrative measures for China’s securities companies and fund management firms that venture abroad to set up or buy into overseas financial entities. These measures set out thresholds for related outgoing players, define their business scope, call for improved management, and strengthen cross-border supervision.
On Oct. 12, two securities companies, China Galaxy Securities Co., Ltd. and China Securities Co., Ltd., announced they had received the green light from the China Securities Regulatory Commission (CSRC) to pilot certain overseas business.
The green light allows these two companies to invest their proprietary funds in exchange-traded financial products as well as other financial products or instruments targeted by the Qualified Domestic Institutional Investors (QDII), which are Chinese financial institutions investing in offshore stocks and bonds.
Additionally, they are allowed to sign a master agreement with domestic or overseas counterparties on the trading of over-the-counter financial derivatives.
At present, nine securities dealers in China hold such approval from the CSRC, with seven granted this year after none had been given in both 2016 and 2017.
Aside from striving to get approval for conducting the above business, Chinese securities companies with global ambitions are increasing their overseas presence via acquisitions.
In January, China Galaxy Securities Co., Ltd. purchased a 50-percent interest in the stockbroking joint venture CIMB Securities International Pte. Ltd. (CSI). Another Chinese company, Huatai Securities Company Limited, acquired AssetMark Financial Holdings Inc, a U.S. consultancy firm, in 2016.
Along with the expanding international footprints of these securities companies, the CSRC has taken corresponding measures to regulate their development.
In September, the CSRC issued a set of administrative measures for China’s securities companies and fund management firms that venture abroad to set up or buy into overseas financial entities. These measures set out thresholds for related outgoing players, define their business scope, call for improved management, and strengthen cross-border supervision.
Latest comments