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Securities companies allowed to introduce new services

(Xinhua)
Updated: 2008-11-01 13:37

Chinese securities companies can introduce new services more frequently as the country adjusted its regulation on management on such kind of companies, said the country's securities regulator.

China Securities Regulation Commission (CSRC) published a provisional regulation on examination and approval of securities company's business scope on Friday. The regulation will take effect as of December 1.

According to the regulation, securities companies - financial institutions engaged in securities trading, capital management of customers, and securities investment consultation - can apply to the government to introduce new services six months later after the previous one. The old rule said the time span should be no less than one year.

Under Chinese regulation, if a securities company wants to introduce a new business or service, it should apply to the government for approval.

Experts say this move aimed to boost domestic securities and stock markets, because such companies can do business in a more active and free manner after restriction has been removed or loosened.

China's stock market dropped more than 66 percent from its peak last October. The negative impact of the world financial crisis made the situation even more arduous.

The regulation also ordered securities companies to establish evaluation and examination mechanism before introducing new services, map out business management mechanism, and adopt risk-control measures.

The previous regulation on securities companies monitoring, which took effect in 1999, will expire on December 1.