StanChart Eyes Mainland Brokerage Business
In this article (5)
Standard Chartered is reportedly applying for a brokerage license in China, joining its peers in the wave of foreign entry into the mainland market.
Mainland’s securities watchdog, the China Securities Regulatory Commission (CSRC), has accepted an application from Standard Chartered Hong Kong on October 10 to set up a securities firm in the market, according to a report from state-owned media Xinhua.
According to Standard Chartered, the bank was looking to further develop onshore business through acquiring new licenses.
Since Beijing made good on a trade deal signed with the U.S. to scrap foreign ownership caps on securities and mutual fund firms, foreign financial institutions from the U.S., Europe, Japan and Singapore have been rapidly seeking to establish a presence to capitalize on new opportunities. Within brokerage, Japan’s SBI was the most recent to express greater interest in the mainland’s sub-sector due in part to growing political instability in Hong Kong.
Questions & Answers
Q.Which entity within Standard Chartered has applied for the brokerage license?
Which entity within Standard Chartered has applied for the brokerage license?
The China Securities Regulatory Commission has accepted an application from Standard Chartered Hong Kong. This suggests Standard Chartered Hong Kong is the specific entity seeking to establish a securities firm in the mainland market.
Q.What is Standard Chartered's stated reason for seeking new licenses?
What is Standard Chartered's stated reason for seeking new licenses?
Standard Chartered has indicated that it is looking to further develop its onshore business in China. Acquiring new licenses is a strategy for achieving this expansion within the mainland market.
Q.What change in regulations has allowed foreign financial institutions to expand in China?
What change in regulations has allowed foreign financial institutions to expand in China?
Beijing removed foreign ownership caps on securities and mutual fund firms, fulfilling a trade deal with the U.S. This change opened opportunities for foreign institutions, including Standard Chartered, to enter the mainland market.
Q.Have other foreign firms shown interest in the mainland brokerage sector?
Have other foreign firms shown interest in the mainland brokerage sector?
Yes, other foreign financial institutions from the U.S., Europe, Japan, and Singapore are rapidly establishing a presence. Japan's SBI recently expressed greater interest in the mainland's brokerage sub-sector.
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