Advertisement

April 15, 2014

China Amends Rules of Establishing Securities Companies and Subsidiaries 中国证监会修改《外资参股证券公司设立规则》及《证券公司设立子公司试行规定》(10/16/2012)

The China Securities Regulatory Commission (CSRC) released the Decision on Amending the Rules for Establishment of Securities Companies with Foreign Equity (“Securities Decision”) and the Decision on Amending the Trial Regulations for Establishment of Subsidiaries by Securities Companies (“Subsidiaries Decision”) on October 16, 2012, which took effect on the same day.

The key amendment to the Securities Decision is the upper limit of shareholding for the overseas shareholders, which has been increased from the previous 33 percent to the current 49 percent. It is explicitly provided that this Securities Decision also applies to investments made by investors from Hong Kong, Macao and Taiwan securities companies.

Other important amendments to the Subsidiaries Decision are 1) that for subsidiaries of a securities company intending to expand their scope of business activities, the mandatory requirement on the continuous operation has been reduced from five consecutive years to two consecutive years and 2) that non-violation records of such subsidiaries have been reduced from the last three years to the last two years.

  • Decision on Amending the Rules for Establishment of Securities Companies with Foreign Equity and the Trial Regulations for Establishment of Subsidiaries by Securities Companies
  • 关于修改《外资参股证券公司设立规则》及《证券公司设立子公司试行规定》的决定
  • Issuing Authority: the China Securities Regulatory Commission
  • Date of Issuance: October 16, 2012 / Effective date: October 16, 2012
©2014 Greenberg Traurig, LLP. All rights reserved.

About the Author

Shareholder

George Qi is a shareholder in Greenberg Traurig's Shanghai office. He focuses his practice primarily on China-related cross-border mergers and acquisitions, capital market, corporate finance and general corporate matters. He has wide-ranging experience advising multinational companies in acquisitions and otherwise doing business in China, and in advising Chinese private companies in raising capital in overseas capital markets.

86 21 6391-5073

About the Author

Shareholder

Dawn Zhang is a shareholder in Greenberg Traurig's Shanghai office. She has broad experience advising clients on venture capital, China-related cross-border mergers and acquisitions, restructuring, joint ventures, and general corporate matters. Before joining Greenberg Traurig, Dawn practiced in other international law firms for many years and served as the PRC legal counsel for a multinational corporation, where she handled a wide variety of corporate matters for public and emerging growth companies. Dawn passed the national PRC judicial qualification examination in 1998 and was...

86 (21) 6391-6633

Boost: AJAX core statistics

Legal Disclaimer

You are responsible for reading, understanding and agreeing to the National Law Review's (NLR’s) and the National Law Forum LLC's  Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.  

Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 

Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.

The National Law Review - National Law Forum LLC 4700 Gilbert Ave. Suite 47 #230 Western Springs, IL 60558  Telephone  (708) 357-3317 If you would ike to contact us via email please click here.