London, Thursday, October 04, 2007 -- ARANCA NEWSTRACK -- www.aranca.com
India, Republic of (Press Release) October 5, 2007 --
US financial firms' ambitions in China could be stymied by government moves to prevent them taking over domestic brokerages, it has been reported.
New rules will prevent foreign-owned companies from acquiring more than a 20 per cent stake in Chinese brokerages, according to unnamed sources cited by the International Herald Tribune.
The legislation would severely hamper Wall Street banks' attempts to target the world's fastest growing stock market, where existing regulations already forbid them from setting up their own brokerages.
Tim Ferdinand, vice chairman of Euro Securities, the Chinese investment banking venture of CLSA, said that the proposals indicated that approval for UBS and Goldman Sachs to acquire stakes in Chinese brokerages should be regarded as exceptions.
He added: "Foreign investment banks will have to accept that the Chinese are not going to open their financial markets quickly."
News of the proposed reforms comes as recent figures showed that the size of China's stock markets has grown three-fold this year, to stand at around $3.37 trillion.
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New rules will prevent foreign-owned companies from acquiring more than a 20 per cent stake in Chinese brokerages, according to unnamed sources cited by the International Herald Tribune.
The legislation would severely hamper Wall Street banks' attempts to target the world's fastest growing stock market, where existing regulations already forbid them from setting up their own brokerages.
Tim Ferdinand, vice chairman of Euro Securities, the Chinese investment banking venture of CLSA, said that the proposals indicated that approval for UBS and Goldman Sachs to acquire stakes in Chinese brokerages should be regarded as exceptions.
He added: "Foreign investment banks will have to accept that the Chinese are not going to open their financial markets quickly."
News of the proposed reforms comes as recent figures showed that the size of China's stock markets has grown three-fold this year, to stand at around $3.37 trillion.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at syndicate@aranca.com.
Tel: +91.22.4005 2219 / +91.22.6725 8115
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