Japanese Firm to Set Up First Fully Foreign-Owned Money Broker in China
What’s new: China’s banking regulator on Thursday approved a Japanese company to set up the first fully foreign-owned money broker (link in Chinese) on the Chinese mainland, as the country continues to open up its financial markets.
Tokyo- and Osaka-based money broker Ueda Yagi Tanshi Co. Ltd. needs to establish the new company in Beijing within six months of the approval, the regulator said.
In China, a money broker provides intermediary services including facilitating fundraising, bond trading and foreign exchange trading among financial institutions.
What’s the background: Supporting the setup of a wholly foreign-owned money broker was one of the 11 measures (link in Chinese) China announced in July 2019 to further open up its financial markets.
The measures covered the securities sector, which is further opening up to the outside world. Recently, Japanese investment bank Daiwa Securities Group Inc. and Singaporean banking giant DBS Bank Ltd. have both received approval to set up majority-owned securities joint ventures on the mainland, bringing the total number of foreign companies allowed to do so to eight.
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