(China Alert) Broking new ground
-The State Council has committed to further opening the sector to global players.
-We believe two foreign majority-owned brokerages will be approved in 2017.
Update: Brokerages are often the less-talked-about middle child of financial joint ventures (JVs) onshore. This is about to change as the State Council’s directive on Tuesday applies to brokerages as much as it does mutual fund companies. Unhindered by current limitations on JVs, especially as minority partners, global investment banks would be able to acquire licenses for some of the largest revenue generating business lines of 2016. HSBC kicked off proceedings, but 2017 is set to be a year of market entry, exit and, most importantly, everything in between.
It attempted the first leap into a majority-owned brokerage late in 2015 but, with approval to begin operations pending, HSBC’s first-mover status is less certain. Firms such as …
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