Western banks fear China securities watchdog's new rules will limit JV control

The Chinese Communist Party (CCP) seal displayed inside the Great Hall of the People prior to the opening session of the National People's Congress in Beijing, China, on Friday, March 5, 2010. Photographer: Nelson Ching/Bloomberg

Western banks are seeking clarification from China‘s securities watchdog on proposals to allow them to take over their onshore securities ventures, amid concerns about high asset value requirements and limits to ownership by non-financial investors.

Giving foreign financial firms a controlling stake in their China securities joint ventures is a key part of China‘s pledge to ease foreign ownership curbs, especially in the country’s trillion-dollar financial sector.

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