China will not give the brokers in insult
And will not allow foreigners to skim the cream off in stock market
the Authorities of China will not allow to the foreign companies to put under control broker firms in the quickly growing stock market. As have informed yesterday sources Bloomberg, the corresponding bill which is now on consideration of the state commission under securities of the Peoples Republic of China, provides restriction of a share of the foreign capital in such companies of 20 %.
Capitalization of stock market of China (a stock exchange of Shanghai and Shenchzhenja) from the beginning of this year has grown in two and a half time, having reached 3,37 trln dollars
Since January number of broker accounts on local trading platforms has increased by 47 million, to 125 million Stock market became the present Klondike for the local broker companies receiving high commission fee for service of transactions. So, market cost of the largest in China and the fourth on size in world Citic Securities Co. Has grown with 10,5 mlrd yuans (1,2 mlrd dollars) in 2005 - m to 320 mlrd yuans (42,2 mlrd dollars) This year.
leading world financial institutions burn with the desire to take part in a sharing of a broker pie in China, however while to pinch off from it more - less decent piece can only Goldman Sachs Group Inc. And UBS AG. Goldman Sachs owns 33 - a percentage share holding in joint company Beijing Gao Hua Securities Co with Chineses. UBS AG in the summer of last year has acquired the right to creation in the Peoples Republic of China joint firm UBS Securities. Originally the share holding of Europeans made 20 %, but conversations on its fast increase thus went. Other foreign financial giants are actively involved with the Chinese companies and banks only as organizers IPO on internal and foreign platforms, but the commissions here are insignificant.
the law developed now by the Chinese regulator, apparently, interests Goldman Sachs Group Inc. And UBS AG will not restrain. The authorities of China differ unpredictability in a choice of foreign partners to which give essential preferences in work in home market, but when the choice is made, prefer not to unscrew it a hand. New rules will exclude possibility of acquisition of significant share holdings other foreign companies, including JP Morgan Chase and Co. Both Merrill Lynch and Co. “ Such protectionist and dualistichnyj the approach is to the full entered in carrying out of a policy of reforms by the Chinese authorities, - the head of partner program GK " has confirmed daily; Forex Club “ in Beijing Pavel Hizhnjak. - As the question with Goldman Sachs and UBS will be solved, to tell, most likely, them will difficult not force to sell “ superfluous “ actions. The law should not have a retroactive effect “.
the Expert has underlined that the foreign companies are compelled to accept the rigid game rules established by Beijing as want to get by all means on the local market. During strategic dialogue on economy between China and the USA this year vitse - the prime minister of the State Council of the Peoples Republic of China At And repeatedly promised to the American Minister of Finance Henry Polson to open a securities market for the foreign companies, but, seemingly, to infringe upon interests of the firms Beijing in the near future does not gather. Remaining growth of the market allows the national companies to accumulate a fat, increasing capitalisation. “ of China are assured that till next year the market in safety and inflow of money for it will remain, - has told daily expert Chatham House of Vanessa Rossi. - When the confidence can be gone? Possible dangerous line - the Olympic games. Before them (but not earlier than next year) outflow of capitals " can begin;.