8 June 2018
Client Alert | China | Capital Markets
On 28 April 2018, the China Securities Regulatory Commission (“CSRC”) released the Administrative Measures for Foreign-Invested Securities Companies (“2018 Measures”), which replace the Rules on the Establishment of Foreign-Invested Securities Companies (“2012 Rules”) in effect since 11 October 2012. Among the most significant changes to the Chinese financial market brought by the 2018 Measures is that qualified foreign investors are now allowed to control securities companies in China.
During the meeting between President Xi Jinping and U.S. President Donald Trump last November, China committed to further opening up its financial market to foreign investors. The CSRC released the 2018 Measures as a strategic step for implementing various policies that have been formulated since then in accordance with this commitment.
This Client Alert highlights the key points of the 2018 Measures and its potential impact on foreign investment in Chinese securities companies.
KEY CHANGES UNDER THE 2018 MEASURES
Compared with the 2012 Rules, the key changes brought by the 2018 Measures are:
Please click on the PDF file below to read the full Client Alert.