Arab Today, arab today china may pilot broker licenses for banks
Last Updated : GMT 20:46:42
Arab Today, arab today
Arab Today, arab today

China may pilot broker licenses for banks

Arab Today, arab today

Arab Today, arab today China may pilot broker licenses for banks

China banks stock
Beijing - XINHUA

China may grant commercial banks stock broker licenses in a test run of reforms to allow lenders to conduct mixed business, a business insider has told Xinhua.

The State Council, or China's cabinet, is likely to permit several banks to hold securities brokerage licenses directly in an experimental manner at proper time, said the source, who is familiar with the matter but declined to be named.

The source didn't elaborate on the possible timing of the move, but an experimental manner usually means that it will probably happen before laws are changed to formally allow such practice.

It is a common international practice to let some banks try mixed business first and amend laws later, Sinolink Securities said in an earlier report.

The current Law on Commercial Banks prohibits lenders from undertaking trust and broker businesses. A draft amendment to the law was passed by the State Council in June and has yet to be reviewed by the country's top legislature.

There was controversy during the amendment process on whether the restrictions on banks should be removed, but the final draft may set a general direction for licensing them to carry out mixed business, according to the source.

China's Securities Law mandates that securities, banking, trust and insurance should be operated and regulated separately. However, the lines between these businesses have become increasingly blurred in recent years.

The potential income from brokerage increasingly appeals to banks, which are under pressure as interest rate cuts and reforms to liberalize those rates squeezed their profit.

Of 16 commercial banks listed on China's yuan-denominated A-share market, six have already ventured into brokerage, including the country's top four state-owned banks. They made it through buying stakes in or establishing separate subsidiaries with broker licenses.

However, most of those banks are basically limited to broker services in Hong Kong, instead of the mainland stock market.

The country's securities regulator, China Securities Regulatory Commission (CSRC), is working to allow banks to apply to do broker business, though no timetable has been set, CSRC spokesman Zhang Xiaojun said in March.

Some have voiced concerns over regulators' ability to monitor risky behavior once banking and brokerage are managed under the same roof.

These concerns have become more justified after China's stock market saw a boom-bust in the past few weeks, partly caused by wild margin trading, or trading stocks on borrowing.

To avert risks, banks with broker licenses would still have to conduct the business through setting up independent subsidiaries, rather than do it by themselves, Industrial Bank chief economist Lu Zhengwei told Xinhua.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china may pilot broker licenses for banks Arab Today, arab today china may pilot broker licenses for banks

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday