China Securities Regulatory Commission, Rules for the Establishment of Securities Companies with Foreign Equity Participation (Revised)

Main Contents: According to the revised rules, a foreign investor may, in accordance with the law, acquire shares of a listed Chinese-invested securities company through securities transactions on a stock exchange, or establish a relationship of strategic cooperation with a listed Chinese-invested securities company and, with the approval of the CSRC, hold shares of such company, and in neither case shall the approved scope of business of the listed Chinese-invested securities company change. Provided that the controlling shareholder is a Chinese-invested shareholder, a listed Chinese-invested securities company shall not be subject to the restriction that requires the shareholding percentage of at least one Chinese-invested shareholder to be not less than one-third.

Related Legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21; and PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31