Securities industry in China
Securities industry in China is an article on the securities industry in mainland China. Regulation. In mainland China, the China Securities Regulatory Commission is the primary regulator; however, it has delegated certain activities to a self-regulatory organization called the Securities Association of China (SAC). Mainland China began an IPO sponsor system began in 2004, which is similar to a sponsor system in Hong Kong began in 1999. In order to be publicly listed in China, a prospective listing firm must be sponsored by a securities company (investment bank) and the sponsor must assign sponsor representatives  to the listing firm. This In 2012, the SAC took over registration of sponsor representatives. The exam to become a sponsor representative is extremely difficult, with a one percent passing rate, and sponsor representatives have been highly compensated, with $1 million annual salaries in 2010. Despite this, they are viewed as often ineffective. Equity share types and foreign investment. Mainland shares are known as A-shares and are not typically available for purchase by foreigners. B-shares are available to foreigners, but are reputed to be more risky as they are available for less desirable companies. H-shares are  for mainland China companies which are traded on the Hong Kong Stock Exchange. Institutional investors can apply to become Qualified Foreign Institutional Investors (a program which began in 2002) and then are allowed to buy A-shares; the minimum assets under management was reduced from $5 billion to $500 million in 2012. On 10 November 2017, China allowed foreign participation up to 51% in securities ventures. On March 13, 2020, the Securities Regulatory Commission announced that the restriction on foreign shareholding ratio of securities companies will be abolished from April 1, 2020, and qualified foreign investors may submit  applications for the establishment of securities companies or change of the actual controller of the companies in accordance with the requirements of laws and regulations, relevant regulations of the SFC and relevant service guidelines in accordance with the law. In the presence of the huge Chinese market, foreign-owned brokerage firms are coming in droves. Local securities companies. 2010, there are 106 Members of Securities Association of China Rankings. Domestic rankings in 2010 2. Net brokerage revenue 3. Total assets Source: Securities Association of China Global rankings in 2010 & 2011Q1 1. Sponsored deals Source: Bloomberg