On 28 April 2018, the China Securities Regulatory Commission ("CSRC") officially promulgated the Measures for Administration of Foreign Investment in Securities Companies (the "Official Measures") , following CSRC’s issuance of a public comment draft of the same (the "Draft Measures") on 28 March 2018. The Official Measures are widely considered a significant move to further open up China's domestic financial sector.
How will the Official Measures affect foreign investment in securities firms in China? This newsletter begins with a background of the previous foreign ownership limitations in China, interprets the key regulatory changes and impacts on foreign investment in securities firms as stipulated in the Official Measures, and briefly analyzes the regulatory trends for further implementing China's other commitments to ease restrictions on foreign investment in the financial sector.