The China Securities Regulatory Commission has revised rules to allow more companies, including locally incorporated foreign banks, to sell mutual funds in China from Oct. 1, 2011, The Wall Street Journal reports. Foreign commercial banks must satisfy certain conditions, such as complying with the reserve requirement ratio and not having any administrative or criminal penalties in the past three years, to sell the mutual funds.
The local units of HSBC and Citigroup have already acquired initial approval to underwrite corporate debt in China, adds Reuters. Foreign banks can now apply for business licenses but will face stiff competition from local companies, including Industrial and Commercial Bank of China and China Construction Bank. The new regulation has also increased the limit of registered capital for securities investment consulting agencies and independent fund sellers to $3 million from $0.77 million to cut risks.
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