CLSA investment bank joint venture approved | SCMP
CLSA has become the first foreign investment bank to win approval to set up a joint venture in China under new market-opening regulations introduced earlier this year.
The French-backed regional house said yesterday it had received a formal letter from the China Securities Regulatory Commission (CSRC) giving the go-ahead for a new Shanghai-based firm to be created in conjunction with Xiangcai Securities, a top-10 ranked mainland brokerage firm.
Mr Coull said the joint venture should be able to attract domestic mainland companies and foreign-invested companies as clients. He said it would be a ''one-stop shop'' to help companies weigh the options of issuing A or B shares in China, H shares in Hong Kong or equities on other overseas markets. The venture would also be able to underwrite state and corporate bond issues.
BNP Paribas is understood to be among other foreign brokerages aiming to get a toehold in the Chinese investment banking market. Morgan Stanley already has a joint venture with China Construction Bank - China International Capital Corp (CICC) - which has won a large number of deals. It was allowed to operate under a pilot scheme before the formal Securities Law was introduced.
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