Foreign Securities Firms To Receive Equal Treatment In China

by Philip Morton, Investors Offshore.com

05 July 2002

The newly appointed Chairman of the Securities Association of China, Zhuang Xinyi announced this week that as the country opens up its stock market, the aim is to afford foreign securities companies equal treatment to their Chinese counterparts on the mainland's bourses, and invited overseas operators to become members of the non-government securities industry watchdog.

Speaking to the China Daily newspaper about the reasoning behind the move, Mr Zhuang explained that: 'The membership would promote their communication with their Chinese counterparts and faciliate cooperation.'

However, he added that potential foreign SAC members must first obtain a licence from the Chinese government to do securities business on the mainland, and must be registered in China.

Currently, the China Daily reported, membership of the Securities Association is restricted to domestic securities house, fund management firms, and securities consulting companies.

This news will undoubtedly be welcomed by a number of foreign securities institutions which are in talks with domestic firms over planned joint ventures.

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