China Securities Regulatory Commission (CSRC) was last week
expected to issue guidelines on futures brokerage joint
ventures between Hong Kong and Chinese firms within days.
Under the closer economic partnership arrangement (CEPA)
between Hong Kong and mainland China, Hong Kong-based FCMs will
be able to acquire up to 49% of a Chinese futures brokerage
firm. However, the acquiring broker will have to meet several
conditions, including being in business for at least five
years, being profitable for two consecutive years, and having a
minimum capital of HK$50m ($6.4m) amongst other criteria,
sources told FO Week.
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