Two foreign-funded financial institutions land in Beijing

0 Comment(s)Print E-mail Xinhua, September 10, 2020
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China has given the green light to Tokyo-based Ueda Yagi Tanshi to establish the first wholly foreign-owned money broker on the Chinese mainland, as well as Japanese financial giant Daiwa Securities Group Inc. to set up a majority-owned joint venture. Both new companies will be established in Beijing.

Tentatively known as Ueda Yagi Money Brokerage China, the new company will be situated in the Tongzhou district of Beijing. Its business scope includes transactions in the foreign exchange market both domestically and overseas, money market transactions, bond market transactions, and derivatives brokerage.

Granting approval for the establishment of Ueda Yagi Money Brokerage China is an important joint move by the China Banking and Insurance Regulatory Commission and the commission's Beijing Office to carry out the State Council's decision to accelerate opening-up China's financial sector, said Wu Jingchun, an inspector with the commission's Beijing Office. Wu made the comments during a news conference at the China International Fair for Trade in Services (CIFTIS) on Wednesday.

"It is also one of the great achievements of CBIRC and CBIRC's Beijing Office in giving full support to Beijing to build a national comprehensive demonstration zone for expanding opening-up in the service sector," Wu said.

Between 2005 and 2010, five joint-venture currency brokerage companies were established on the Chinese mainland. The approved Ueda Yagi Money Brokerage China will become the sixth currency brokerage company approved in China after a ten-year hiatus.

In July last year, China introduced seven measures to further open its financial sector, including supporting foreign investors in setting up wholly foreign-owned money brokerages and cooperating with local businesses to establish joint ventures.

"On hearing the news, I set up a team to apply for the preparation of the currency brokerage Chinese subsidiary," said Huang Hong, head of the Ueda Yagi Money Brokerage China preparation team.

"Ueda Yagi Tanshi is confident in expanding China's currency brokerage market," Huang added, saying that the new company will work to provide China and foreign customers with the most cutting-edge and considerate services in the industry.

On the same day, Japanese financial giant Daiwa Securities Group Inc. announced that it would set up a joint venture in Beijing, Daiwa Securities (China), investing 1 billion yuan ($146 million).

"The news of establishing Daiwa Securities (China) demonstrates the full recognition of Beijing's business environment by international financial institutions and high expectations from international investors for the growth of the Chinese market," said Yin Yong, deputy mayor of Beijing.

The opening up of the financial industry is an important part of the overall plan for China's steady opening towards the outside world. Beijing's financial industry, meanwhile, is spearheading this latest round of opening up.

In recent years, Beijing has continuously accelerated the opening up of its financial industry. As the only comprehensive pilot city for expanding the opening up of China's service industry, Beijing launched a comprehensive pilot program in 2015 and has rolled out numerous additional pilot policies over the past five years.

Yin said that Beijing has attracted a large number of foreign companies to the Chinese capital through its comprehensive advantages in financial supervision, customer innovation, talent pool, professional services, infrastructure, and business environment.

Currently, Beijing houses three major global rating agencies: Standard & Poor's, Fitch, and Moody's; two large bank card clearing institutions: MasterCard and VISA; as well as PayPal and other emerging third-party internet payment institutions. It also attracted Oaktree Capital and other new asset management institutions, as well as important international financial infrastructures such as the Society for Worldwide Interbank Financial Telecommunication, to open offices in Beijing.

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