CSRC Encourages Mergers Between Securities Firms

Source: Regulation Asia Editors, Regulation Asia 2020-07-21

The CSRC (China Securities Regulatory Commission) is reportedly encouraging mergers and acquisitions among brokerages and mutual fund houses.

According to Reuters, the move is aimed at solving the problem of unfair competition among industry peers, preventing conflicts of interest and transferring interests. The CSRC is also said to support the launch of employee stock ownership and equity incentive plans.

Earlier this month, Bloomberg reported that China’s largest broker Citic Securities and smaller rival China Securities had secured an informal agreement to merge, though the two companies denied being party to a merger plan.

China Securities Regulatory Commission

CSRC Encourages Mergers Between Securities Firms

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