CBIRC Approves First Fully Foreign Owned Money Broker

Fazzaco learned that Japan's Ueda Yagi Tanshi will become the first foreign firm to commence currency brokerage business in China under a fully-owned unit.

According to the press release, the Beijing branch of the CBIRC (China Banking and Insurance Regulatory Commission) has granted approval to Japanese money broker Ueda Yagi Tanshi allowing it to start operations of its China unit.

Ueda Yagi Money Broking (China) Co Ltd will become the first fully foreign-owned currency brokerage to commence business in China, and just the sixth currency brokerage in the country.

The company has registered capital of CNY 60 million and is a wholly-owned subsidiary of Tokyo-based money broker Ueda Yagi Tanshi Co Ltd.

With the approval, Ueda Yagi Money Broking China is allowed to transact in foreign exchange markets both in China and abroad, and using both domestic and foreign currencies. It can also engage in domestic and foreign bond market and derivatives transactions.

The company is given six months to complete the necessary procedures to commence operations.

In a separate statement, the CBIRC said the establishment of Ueda Yagi Money Broking (China) will help expand the supply of financial services and provide more choices and opportunities for financial institutions to participate in market transactions.

"Currency brokers can provide financial institutions with professional and sophisticated brokerage services, especially to effectively help small and medium-sized financial institutions broaden their access to information and improve their bargaining power, which help to maintain open and transparent financial markets and improve the efficiency of financial asset allocation."