(1) Why do you want to cancel the restrictions on the proportion of foreign investment in securities companies?
Isn't it good for us to eat our own meat? In fact, the cancellation of the restriction on the foreign shareholding ratio of securities firms stems from the requirement of full financial opening on April 1 day. Why should it be fully open? This stems from the equality requirement within the World Trade Organization. My cost can't earn your money, but your capital can't earn my money, right?
(2) What is the impact of canceling the foreign shareholding ratio of securities firms?
After a long period of development, the strength of China's securities firms has also made great progress, and the number of securities firms has also increased.
Now there are both big fish and small fish in the brokerage industry. Some have strong strength and extensive channels. Some have only been established for a few years, and the channels are unstable. Facing the arrival of foreign securities firms, it is a great pressure for small and medium-sized securities firms. When foreign securities firms enter China, they may increase their efficiency by acquiring and controlling some small and medium-sized securities firms.
In terms of business, everything else is ok, but in terms of the pricing of IPO enterprises, European and American brokers are strong, which is a great impact. The restriction on the ratio of foreign shares has been abolished, and the pressure on domestic brokers in this regard is even heavier.
But generally speaking, only by attracting the wolf into the room first can we dance with the wolf and cancel the restriction on the ratio of foreign shares of securities companies, which will prompt domestic brokers to actively learn from foreign excellent peers and inject momentum into the development of domestic capital market.