Foreign Investors Allowed Wider Access to Securities Joint Ventures

By Liang Jing
KhattarWong

With the flourishing of China's capital market in recent years, more and more foreign investors are seeking access to China's securities market. The government of the People's Republic of China (PRC) temporarily ceased approvals for the establishment of joint venture securities companies last year, which restricted foreign investors' access in the meantime. However, access has been reallowed and has become even wider with the promulgation of the revised Rules for the Establishment of Securities Companies with Foreign Equity Participation (the Rules).

The Changes

As one of the most important governmental measures for stimulating the openness and innovation of China's securities industry, the revised Rules, which were promulgated on December 28 2007 and came into force on January 1 2008, amended sixteen of the twenty-eight articles contained in the previous Rules (promulgated in June 2002) and includes a new provision.