China to grant in­vest­ment li­censes to lenders

Arab News - - Business News -

China plans to grant in­vest­ment bank­ing li­censes to com­mer­cial lenders as part of ef­forts to breed in­dus­try be­he­moths in the face of fiercer for­eign com­pe­ti­tion, busi­ness magazine Caixin re­ported. A pi­lot scheme could in­volve at least two of China’s largest banks get­ting the green light from the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion (CSRC) to con­duct in­vest­ment bank­ing busi­ness on the main­land, ac­cord­ing to Caixin. The In­dus­trial and Com­mer­cial Bank of China sub­mit­ted a plan to CSRC in late 2018 seek­ing to set up a se­cu­ri­ties unit with reg­is­tered cap­i­tal of 100 bil­lion yuan, Caixin re­ported.

In con­trast, Chi­nese bro­ker­age gi­ant Citic Se­cu­ri­ties has reg­is­tered cap­i­tal of 13 bil­lion yuan. Reg­u­la­tors’ de­sire to break the wall be­tween com­mer­cial and in­vest­ment bank­ing was fu­eled by mount­ing com­pe­ti­tion from for­eign play­ers. Reuters

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