/>iThe China Securities Regulatory Commission (CSRC) released the Decision on Amending the Rules for Establishment of Securities Companies with Foreign Equity (“Securities Decision”) and the Decision on Amending the Trial Regulations for Establishment of Subsidiaries by Securities Companies (“Subsidiaries Decision”) on October 16, 2012, which took effect on the same day.
The key amendment to the Securities Decision is the upper limit of shareholding for the overseas shareholders, which has been increased from the previous 33 percent to the current 49 percent. It is explicitly provided that this Securities Decision also applies to investments made by investors from Hong Kong, Macao and Taiwan securities companies.
Other important amendments to the Subsidiaries Decision are 1) that for subsidiaries of a securities company intending to expand their scope of business activities, the mandatory requirement on the continuous operation has been reduced from five consecutive years to two consecutive years and 2) that non-violation records of such subsidiaries have been reduced from the last three years to the last two years.
- Decision on Amending the Rules for Establishment of Securities Companies with Foreign Equity and the Trial Regulations for Establishment of Subsidiaries by Securities Companies
- 关于修改《外资参股证券公司设立规则》及《证券公司设立子公司试行规定》的决定
- Issuing Authority: the China Securities Regulatory Commission
- Date of Issuance: October 16, 2012 / Effective date: October 16, 2012
