CSRC allows capital markets competition

The Provisions on Issues Relevant to the Implementation of the 〈Measures for the Administration of Securities Investments in China by Qualified Foreign Institutional Investors〉关于实施〈合格境外机构投资者境内证券投资管理办法〉有关问题的规定 from the China Securities and Regulatory Commission was issued on July 27 and became effective the same day.

    The Provisions strengthens supervision and aims to attract more foreign long-term institutional money into the Chinese capital markets. The CSRC is looking to accelerate cross-border flows and further open up domestic financial markets to foreign investors,” said Hubert Tse, a partner at Chinese law firm Boss & Young in Shanghai who advises qualified foreign institutional investors (QFIIs) in China.

    Article 13 of the Provisions allows QFIIs to choose more than one securities dealer. For the first time, each QFII can use three domestically registered securities companies at the Shanghai Stock Exchange and the Shenzhen Stock Exchange to trade securities.