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| Thursday, October 16, 2008 00:27:42 |
China to let brokers invest aboard
China Securities Regulatory Commission (CSRC), said it plans to allow securities firms to invest client's funds in overseas markets, The Standard reported.
Under CSRC’s draft rules, with the approval of regulators, securities companies will be able to invest foreign currencies of clients, in relation to domestic asset management products, in permitted overseas financial products,
Fund management companies and brokerages will also be allowed to invest the foreign currency funds of domestic institutions and individuals in overseas markets, including in stocks.
"Overseas investment won't be huge at the beginning as it needs time for Chinese brokerages to get familiar with overseas financial markets," said Liang Jing, an analyst at Guotai Junan Securities in Shanghai, to The Standard.
The securities regulator will publish separate rules on brokerages' overseas investment, the draft said. Unlike mutual funds, brokerages' asset-management businesses are banned from wooing clients through the media, said the paper, citing the rules posted Monday.
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