French banking group BNP Parisbas recently established a wholly owned securities firm in Shanghai, becoming the fourth foreign financial institution to set up a wholly owned brokerage firm in the Chinese mainland. Industry insiders said that steady moves by foreign financial institutions to open branches in the Chinese mainland attest to the appeal of the nation's capital market amid China's efforts to further open up its financial sector. BNP Paribas' move followed similar actions by JPMorgan, Goldman Sachs and Standard Chartered. Japan's Mizuho Securities and U.S.-based Citigroup are in the process of applying for regulatory approval from China, according to the report. A resolution adopted at the just-concluded Third Plenary Session of the 20th Communist Party of China Central Committee stressed that China will promote high-standard opening-up of the financial sector, support qualified foreign capital institutions in participating in China's financial services, and move faster to build Shanghai into an international financial center.
Zhou Yunnan, a Beijing-based veteran investor, told the Global Times that the recent moves by foreign financial institutions signal that the internationalization of China's capital market has continued to advance. “It shows the attractiveness of China's capital market is still high, and its development potential is vast. It not only provides a more convenient channel for global investors to participate in China's economic development, but also offers a more efficient opportunity for global companies to enter the Chinese market,” Zhou said.
BNP Paribas' wholly-owned securities firm is based in Shanghai, with a registered capital of CNY1.1 billion. Its business scope includes securities brokerage, consultancy and management of securities assets. Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), said at the Lujiazui Forum in Shanghai in June that the CSRC will support Shanghai in building a world-class international financial center, promote the high-quality development of the stock and bond markets, and support more foreign financial institutions to operate in Shanghai and attract more medium- and long-term capital, the Global Times reports.
