China seeks wide brokerage reforms

David Nealis

China seeks wide brokerage reforms
China is coming up with sweeping reforms of its brokerage system, hoping to empower their investment banks in the hope that it could eventually compete with investment banking and securities companies like Goldman Sachs and Morgan Stanley. According to a document released to securities firms earlier in May 2012, the China Securities Regulatory Commission wants to let domestic brokerages, which currently get most of their money from trading stocks and underwriting new securities, to expand into futures, derivatives, asset management, private banking and private equity.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.