HK, China ventures on cards

China Securities Regulatory Commission (CSRC) was last week expected to issue guidelines on futures brokerage joint ventures between Hong Kong and Chinese firms within days.

Under the closer economic partnership arrangement (CEPA) between Hong Kong and mainland China, Hong Kong-based FCMs will be able to acquire up to 49% of a Chinese futures brokerage firm. However, the acquiring broker will have to meet several conditions, including being in business for at least five years, being profitable for two consecutive years, and having a minimum...