The second newly established wholly foreign-owned securities firm is here! BNP Paribas Securities has been approved for establishment

The pace of foreign securities firms entering the market has accelerated.

On April 15, the China Securities Regulatory Commission approved the establishment of BNP Paribas Securities (China) Co., Ltd., which is 100% controlled by BNP Paribas (BNP Paribas), registered in Shanghai, with a registered capital of 1.1 billion yuan, and its business scope includes 4 items of securities brokerage, securities proprietary trading, securities investment consulting and securities asset management.

In recent years, the pace of opening up the securities industry to the outside world has been accelerating. Zhao Ran, chief analyst of the non-bank financial industry of China Securities Construction Investment, said that with the continuous development of the mainland's economy and society and the continuous improvement of the capital market, the mainland has continued to expand the opening up of the financial sector to the outside world, and gradually relaxed the market access requirements for foreign-funded institutions in many industries and related fields such as banking, insurance, securities firms, and public funds.

BNP Paribas Securities was allowed to carry out four types of securities business

BNP Paribas Securities (China) Co., Ltd. (hereinafter referred to as "BNP Paribas Securities"), newly approved by the China Securities Regulatory Commission, is registered in Shanghai with a registered capital of RMB 1.1 billion, and its business scope includes four business scopes: securities brokerage, securities proprietary trading, securities investment consulting, and securities asset management. The China Securities Regulatory Commission said that BNP Paribas Securities should complete the registration of BNP Paribas Securities within 6 months.

According to the information on the official website of the China Securities Regulatory Commission, the application materials for the establishment of BNP Paribas Securities (China) Co., Ltd. were accepted by the Securities Regulatory Commission on April 27, 2021. On January 7, 2022, the China Securities Regulatory Commission decided to accept it. On April 1, 2022, the SFC gave feedback.

BNP Paribas Securities is 100% owned by BNP Paribas. According to the official website of BNP Paribas, the company is committed to corporate consulting and overseas equity financing business. The Bank's clients include local and overseas corporations, financial institutions, institutional investors and high-net-worth clients. Through a strategic partnership with Bank of Nanjing, BNP Paribas has ventured into retail banking and currently holds an 18% stake in Bank of Nanjing.

This application for the establishment of a securities company is not the first time BNP Paribas has set foot in China's securities industry. In March 2002, Changjiang Securities signed a framework agreement with BNP Paribas on the establishment of a Sino-foreign joint venture securities company, and reached an agreement on long-term cooperation between the two parties. In 2003, BNP Paribas and Haitong Securities established HFT Fund Company, which holds 49% of the shares of HFT Fund Company.

The entry of foreign securities firms into the market has accelerated

Up to now, there are 9 domestic and foreign-controlled securities firms. Among them, Standard Chartered Securities, Goldman Sachs Securities, and JPMorgan Securities are wholly foreign-owned securities firms. In addition, foreign securities firms such as Citigroup Securities, Qingdao Yicai Securities, Mizuho Securities and Nikko Securities are currently striving for business development qualifications in Chinese mainland.

BNP Paribas Securities is the second wholly foreign-owned securities firm to be approved for the establishment and development of securities companies after the restrictions on foreign ownership ratio of securities companies were relaxed. On March 22, Standard Chartered Securities officially opened its business.

Previously, on January 19, 2023, Standard Chartered Securities' application for establishment was approved by the China Securities Regulatory Commission, becoming the first wholly foreign-owned securities firm approved for establishment after the restriction on foreign shareholding ratio of securities companies was officially lifted on April 1, 2020.

On March 15, the China Securities Regulatory Commission (CSRC) issued the "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-class Investment Banks and Investment Institutions (Trial)" (hereinafter referred to as the "Opinions"), which clearly mentioned that it will steadily expand institutional opening-up and support qualified foreign-funded institutions to set up institutions in China. In the eyes of industry insiders, this means that the pace of opening up of China's capital market to the outside world has been further accelerated, and more foreign securities firms will operate in China in the future.

Editor-in-charge: Wan Jianyi

Proofreading: Gao Yuan

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