stop being a raging faggit
China prepares to tear down dusty bank-brokerage divide
China's regulators are planning a trial that could tear down the wall separating banks and securities companies 25 years after the barrier was first put up to control the risk between different parts of the financial system. Caixin reported earlier this week that at least two large state-owned commercial banks may be granted securities licenses by the China Securities Regulatory Commission to test the waters. Sources familiar with the matter said the program will initially involve allowing lenders to offer only investment banking activities rather than a full range of securities services, which would include asset management, proprietary equity trading, and allowing customers to buy and sell stocks.
Today, many of the world's major economies have few, if any, barriers between banking and securities, although there have been restrictions in the past. On the Chinese mainland, the ban on commercial lenders involved in activities such as underwriting initial public offerings and advising on mergers and acquisitions was put in place by the 1995 Commercial Bank Law. The aim was to prevent conflicts of interest between banking and securities operations and to minimize the risk of a crisis in one sector spreading to another. The ban did not sever all ties, however. A few financial conglomerates including Citic Group, China Everbright Group, China Merchants Group, and Ping An Insurance Group Co. of China were allowed to own banking, securities and insurance businesses, although they are run separately. In addition, major state-owned lenders have been allowed to set up securities operations in Hong Kong, although they cannot do business on the mainland.
State-owned lender Bank of China and policy lender China Development Bank are the only two that have their own securities arms on the mainland. Banks are allowed to underwrite corporate bond issuances in the interbank bond market, but they are barred from underwriting any deals involving stocks, such as IPOs or secondary offerings. The growth in China's economy and financial sector over the past two decades has put regulators under increasing pressure to scrap the restrictions. In addition, the recent opening-up of domestic capital markets to international investment banks such as Goldman Sachs and UBS along with government encouraging Chinese financial institutions to go global have added fuel to the call for regulatory change.
A turning point came in November 2017 just after U.S. President Donald Trump's visit to China. Zhu Guangyao, then vice finance minister, announced a blueprint to further open up the financial sector. The measures included abolishing limits on foreign institutions' ownership of securities joint ventures. The deadline for their removal was later set for 2021. However, in July 2019, Premier Li Keqiang announced the deadline would be brought forward to April 1, 2020.
China's banks are much bigger and stronger than they were two decades ago. The four-largest commercial lenders Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China are among the top 10 banks in the world in terms of assets. They are also on the list of 30 global systemically important banks compiled by the Financial Stability Board, an international body that monitors the global financial system.
But China's securities firms are still minnows compared with both Chinese banks and their foreign rivals such as UBS, Goldman Sachs, Morgan Stanley and Credit Suisse AG, all of which have won regulatory approval to take majority ownership of their Chinese ventures. Citic Securities, Guotai Junan Securities, GF Securities and Haitong Securities the country's four biggest investment banks by assets do not even appear on the list of top 10 global investment banks by revenue.
In 2019, 36 mainland-listed banks made a total net profit of 1.67 trillion yuan, while the net profits of 37 listed securities firms were about 101.7 billion yuan, according to Caixin calculations based on annual reports. Data from the Securities Association of China show that in 2019, the net profit of the 133 securities firms in China was 123.1 billion yuan, and their total assets reached 7.26 trillion yuan. Meanwhile, ICBC the country's largest bank by assets saw its net profit reach 313.4 billion yuan last year and its total assets hit 30.1 trillion yuan.
moar here
https://asia.nikkei.com/Spotlight/Caixin/In-Depth-China-prepares-to-tear-down-dusty-bank-brokerage-divide
because this worked SOOOOO well here
they do not have a choice though.
>got a war going on ya know
No shit sherlock!!
Tell us something we don't know
Put your ego away
o7