SINO-FOREIGN SECURITIES JV WILL LEAD TO IMPROVED LEGAL SERVICES IN CHINA
July 09, 2008 | BY
clpstaff &clp articlesLawyers see that China Securities Regulatory Commission's approval of CLSA's Sino-foreign securities joint venture is a good sign for the legal industry,…
Lawyers see that China Securities Regulatory Commission's approval of CLSA's Sino-foreign securities joint venture is a good sign for the legal industry, as more foreign securities companies will follow CLSA's example.
“We expect to see more and more Sino-foreign joint ventures take place in China. They will bring us not only more revenue but also, most importantly, make us improve our services' quality,” said John Ye, partner at Alpha & Leader Law Firm.
Ye said the expansion of securities venture will lead to higher demands on legal practitioners. As the securities market now begins to provide a variety of products, each of them requires different kinds of legal services. More lawyers will be involved in the securities market as a result.
“In the past, only lawyers who specialized in IPOs found it to be good news,” Ye said. “But now, as the services in the securities companies expands, more lawyers can have a chance to get involved. It is positive for the legal sector.”
The revised Regulations for Setting Up Foreign-invested Securities Company were issued in December 2007, and it has been over than a year since the government issued a license to any Sino-foreign securities joint venture. “It's about time for the government to get something out under the revised rules,” said Hannah Ha, partner at JSM.
China has been pressed by the US to open up the market to meet the WTO commitment. That the approval was issued before the fourth round of the China-US Strategic Economic Dialogue reflects China's careful preparation in opening up the market.
“It is good in the sense that before the talk they have something shown. I think they expect that the US will be pressing for the opening up of the market,” Ha said. “We welcome the revised rules and also the approval by CSRC of the Credit Suisse securities JV. It is a good sign for going forward,” she added.
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