China Offers Applications for Financial Holding Cos
BEIJING - There are no more legal obstacles for qualified Chinese financial companies to establish holding firms that can operate across banking, insurance and broking businesses, central bank chief Zhou Xiaochuan said in comments published on Friday.
In the past, financial companies were not operated properly so there were more restrictions, but now many of those restrictions have been removed, said Zhou, in an interview with the China Securities Journal.
Qualified institutions could now apply for licenses to establish financial holding companies, said Zhou. Chinese banks could now operate trusts and open brokerages, while brokerages could issue corporate debt.
In addition, Zhou said that in order to boost investment in the stock market, investors would be allowed to use stocks as collateral for loans.
With the passage of the securities law, there were no more obstacles, he said.
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