StanChart secures regulatory approval to set up securities firm in Mainland China
Standard Chartered Bank (Hong Kong) Limited today announced that it has been granted in-principle approval by the China Securities Regulatory Commission (CSRC) to set up a securities firm, Standard Chartered Securities (China) Limited.
This is the first time the CSRC has granted in-principle approval for the set-up of a securities firm wholly owned by a foreign shareholder via greenfield investment in its onshore market since the lifting of ownership restrictions for foreign financial institutions in 2020.
With an initial capital injection of RMB1.05 billion, the Securities Firm will cover underwriting, asset management (restricted to asset-backed securities only), own-account trading and brokerage activities, playing an important role in Standard Chartered Group’s business strategy in China. The Securities Firm, headquartered in Beijing, will provide products and services related to China’s onshore capital markets for both onshore and offshore clients.
The Bank will appoint John Tan, Head of Financial Markets, Asia, Standard Chartered, as Chairman-designate of the Securities Firm, and Grace Geng as CEO-designate.
Benjamin Hung, Chief Executive Officer, Asia, Standard Chartered, said:
“We are very honoured to be granted the in-principle approval to set up a wholly foreign owned securities firm in Beijing. We are confident of the continued opening of financial markets in China, and are very positive about the country’s development prospects, in particular the promising investment value of the onshore capital markets and the growing attractiveness of Renminbi assets in offshore markets. This is another major milestone for our China franchise, one we remain very committed to.”
Standard Chartered has deep roots in China, with its commercial banking business having been operating in the country for many years. In February 2022, Standard Chartered announced that it will invest USD300 million in China-related businesses over the next three years, helping clients to capture the opportunities brought by China’s continuous opening up.