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Chinese mainland brokers and underwriters have called forregulatory support for their overseas expansion as they seek tobecome more competitive with leading global investment banks. After learning from the failure of foreign investment banks duringthe global financial crisis, Chinese securities companies are readyto set foot abroad, said Yin Ke, head of the InternationalCooperation Committee of the Securities Association of China. Yin is also deputy chairman of Citic Securities Co Ltd. Yin made proposals to the China Securities Regulatory Commission ata two-day meeting where executives from more than 100 companies inthe securities industry discussed plans for capital market reform. "The best way to accelerate the 'going out' strategy of mainlandbrokers and underwriters is to issue shares in overseas markets,which can force the businesses' managers to improve corporategovernance and stimulate convergence with international standards,"Yin said on Tuesday. The most popular way for securities firms to go overseas is tolaunch subsidiaries or branches in Hong Kong, and then start doingbusiness with foreign players. According to Haitong Securities Co Ltd, as of the end of last June,23 securities companies had received permission to set upsubsidiaries in Hong Kong, compared with less than 10 companiesfive years previously. In addition, 17 of those companies underwrote IPOs in Hong Konglast year, four more than in 2011, and earned 1.02 billion yuan($159 million) from that business, Haitong said. However, the Hong Kong underwriting market is still dominated byforeign investment banks which have a market share of more than 70percent, Haitong said. "Under the existing legal framework and capital restrictions, it ishard for Chinese securities companies to directly list on overseasexchanges, such as in the United States," Yin said. Guo Shuqing, chairman of the CSRC, said on Monday that theopening-up of China's securities business will be accelerated andcompanies in the industry should learn from the experience ofcommercial banks' overseas expansion. "Our securities companies should speed up innovation to join theranks of the world's first-class investment banks," Guo said. Managers from Guotai & Junan Securities Co Ltd, SouthwestSecurities Co Ltd and Guosen Securities Co Ltd suggested developinga program that would support residents of Hong Kong, Macao andTaiwan to invest directly in the mainland's A-share market. We are high quality suppliers, our products such as Supermarket Shopping Carts , Metal Display Racks Manufacturer for oversee buyer. To know more, please visits Vegetable Display Stands.
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