A joint-venture securities brokerage, held by Hong Kong and mainland investors, has been approved to be set up in Shanghai's pilot free trade zone.

With a registered capital of 3.5 billion yuan or 540 million US dollars, Shengang Securities will be engaged in offering brokerage services, securities underwriting, proprietary trading, and asset management.

It will provide services to both individual and institutional clients.

Hong Kong-based Mason Financial Holdings and Freeman Financial are the top-two shareholders with 15 percent each in Shengang Securities.

Another 12 shareholders, including a corporate investor from Hong Kong and 10 corporate investors and one limited partnership investor from the Chinese mainland, will take the remaining 70 percent stake.