Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

Foreign funding only short-term fix

By Su Peike (Global Times)

14:42, October 24, 2012

The China Securities Regulatory Commission (CSRC) recently eased its restrictions on foreign ownership of domestic securities firms, raising the stake limit for overseas shareholders from 33 percent to 49 percent.

Although this move will help replenish the capital pools of Chinese securities firms in the short term, over the long haul it will do little to push brokers to improve their profitability.

To a large extend, the balance sheet woes facing Chinese brokers stem from their too-heavy reliance on commission, transfer and service fees. Such fees account for more than half of the revenues of domestic brokers; yet, among overseas brokers, they only account for 10 percent of earnings.

The CSRC should focus on helping the country's securities firms improve their business models - it could, for example, encourage brokerages to provide their clients with more value-added services - rather than just opening the door to more funding.

News we recommend:
House prices nudge upward in September Islands dispute benefits carmakers' competitors Sany's bid to usurp Caterpillar
Falsely labeled crabs upset the market A Boon to the Economy 'Right time' for London to build RMB business
Beijing offices still hot properties  The consuming challenge of food safety The dawn of a new growth era


Leave your comment0 comments

  1. Name


Selections for you

  1. Helicopter formation of PLA army aviation force

  2. Four "gun masters" of PLA Beijing MAC

  3. James Bond and his girls on big screen

  4. Classic cars, sexy girls highlight auto show

  5. Top 10 self-made businesswomen in China

  6. China's economy has bottomed out

  7. J.K. Rowling's new book gets Chinese version

  8. Charming Indian models

Most Popular


  1. China's development benefits all: U.S. city official
  2. Vested interests must not prevent gaokao reform
  3. Economic strains put Hollande on back foot
  4. Sino-Cambodian ties undimmed by Sihanouk’s death
  5. US should engage Asia as a partner
  6. US risks losing neutrality over Diaoyu
  7. New energy initiatives just for show
  8. Commentary: Shining a light on lower taxes
  9. U.S. needs to rethink how to partner China
  10. China needs to rebuild economy

What’s happening in China

All IDs to be checked on trains to Beijing

  1. Porn crackdown
  2. Avon warned by FDA for misleading advertisement
  3. Chinese daughters more filial than sons
  4. Police probe doctors in human egg case
  5. Wuhan to get 200-m ferris wheel