Photo: iStock
Photo: iStock

China’s security regulator is now allowing foreign investors to take majority control of local securities companies, The Paper reported.

According to a new guideline from the China Securities Regulatory Commission,  there is no longer a restriction on foreign investors in joint ventures which limits them to hold no more than 30% of the shares issued by listed securities firms.

Meanwhile, the regulator will gradually expand the business scope of security joint ventures. It has allowed the latter to apply for securities business in an orderly manner in accordance with the experience of the controlling shareholder.

It has also clarified the conditions of foreign shareholders, who must be financial institutions, and have a good international reputation and operating performance.

Their business scale, income, and profit must rank among the top in the world, and have high-level long-term credits over the past three years.