Reference News Network, October 2 report - According to Reuters on September 30, as China further opens its financial sector to foreign institutions, the Chinese securities regulatory authorities have given the green light for Japan's Mizuho Financial Group to establish a wholly-owned securities company in Beijing on September 30.
A statement from the China Securities Regulatory Commission (CSRC) said that this subsidiary of Mizuho Financial Group will be 100% owned by its subsidiary Mizuho Securities Co., Ltd., with a registered capital of 2.3 billion yuan.
The CSRC made the aforementioned approval decision about two years after receiving the relevant application.
Currently, multiple global financial institutions, including Goldman Sachs and BNP Paribas, have been approved to set up wholly-owned securities branches in China, the world's second-largest economy, and Mizuho has now joined this growing list.
China abolished restrictions on foreign ownership of shares in securities companies in 2020, paving the way for foreign financial institutions to more fully enter China's profitable capital market.
Additionally, the Shanghai Stock Exchange announced on September 30 that it would open its stock options market to overseas investors, reflecting the Chinese government's increased efforts to enhance the appeal of RMB assets.
Before issuing this announcement, China introduced a series of measures aimed at attracting global investors into its bond market and promoting the international use of the RMB.
The Shanghai Stock Exchange stated that qualified foreign institutional investors can be approved to conduct options trading for hedging purposes, and can immediately submit applications.
This regulatory relaxation provides overseas investors with a much-needed tool to hedge risks in China's stock market. Currently, China's stock market is surging under the support of Chinese policies and increasing market confidence in China's innovation.
As the trade war initiated by U.S. President Donald Trump and his unpredictable policies have weakened the attractiveness of dollar assets, Chinese financial regulators are intensifying efforts to attract overseas investors.
Last week, China expanded channels for overseas investors to access its bond repurchase market and increased the daily net transaction limit for interest rate swaps used by overseas investors to manage risks through the "Swap Connect" program.
Chinese authorities also announced plans to expand offshore RMB business in Hong Kong and established a global offshore RMB center in Shanghai to promote global use of the central bank's digital RMB. (Translated by Lin Zhaohui)
Original: https://www.toutiao.com/article/7556219409191158326/
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