ANNOUNCEMENT 11 Oct 2012
In October 2012, the government of China announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
China Securities Regulatory Commission, October 11th, 2012. (证监会令【第86号】《关于修改〈外资参股证券公司设立规则〉的决定》)
On 16 October 2012, the China Securities Regulatory Commission ('CSRC') issued the Amended Rules on the Establishment of Foreign-Invested Securities Companies (CSRC Decree NO.66) to further open China's securities market to foreign investors.
In accordance with the newly amended rules, the shareholding gap for foreign investment in Chinese securities companies may be raised from 33% to 49%. However, foreign investors are not permitted to become the controlling shareholders of any securities firm in China; at the same time, the shareholding gap of any single foreign investor and all foreign investors in one listed domestic securities firm remains unchanged with 20% and 25%, respectively.