China to allow higher foreign stakes in securities firms

The China Securities Regulatory Commission (CSRC) on Friday announced plans to change its current rules to raise the cap for foreign stakes in joint venture securities firms to 49 percent from 33 percent.

The regulator also plans to allow joint venture securities firms to apply for permission to expand their businesses two years after going into operation in China, shortening the period from the previous five years, according to an online statement by CSRC.

The changes are open to public opinion from Friday to Sept. 22.

The move is in line with a promise made by Chinese authorities in May to relax foreign ownership limits in China, the statement said.

The policy change follows a string of other steps taken by China to further open its financial markets and ease restrictions on foreign investors.

Earlier this year, China lowered the threshold for qualified foreign institutional investors (QFIIs) and allowed them hold up to a 30-percent stake in a listed company, up from the previous 20-percent stake cap.