StanChart Wins In-Principle to Form Securities Firm in Mainland China

Standard Chartered Bank (Hong Kong) Limited announced today that it has secured in-principle approval by the China Securities Regulatory Commission (CSRC) establish a new securities brokerage unit, Standard Chartered Securities (China) Limited, headquartered in Beijing.

The bank obtains the approval at a time when China encourages expansion by foreign companies after lifting its restrictive COVID-19 policies. And this is the first time the CSRC has granted in-principle approval for the set-up of a securities firm wholly owned by a foreign shareholder via greenfield investment in its onshore market since the lifting of ownership restrictions for foreign financial institutions in 2020.

John Tan, Head of Financial Markets, Asia, Standard Chartered, will take the role of Chairman-designate of the securities firm, and Grace Geng as CEO-designate.

The new unit will cover underwriting, asset management (restricted to asset-backed securities only), own-account trading and brokerage activities, driving the group’s business strategy in China. It will provide products and services related to China’s onshore capital markets for both onshore and offshore clients.

Benjamin Hung, Chief Executive Officer, Asia, Standard Chartered, said: "We are very honoured to be granted the in-principle approval to set up a wholly foreign owned securities firm in Beijing. We are confident of the continued opening of financial markets in China, and are very positive about the country’s development prospects, in particular the promising investment value of the onshore capital markets and the growing attractiveness of Renminbi assets in offshore markets. This is another major milestone for our China franchise, one we remain very committed to."

In early January, Fazzaco reported that Standard Chartered Bank (China) Ltd has completed its first treasury bond futures transaction in China​, with the permission of regulators.