Foreign Institutions to Play Increasingly Active Role in China’s Brokerage Industry

The new China Brokerage Market report serves to provide foreign investors with an in-depth understanding of China’s securities brokerage market.

Singapore (PRWEB) October 7, 2005 -- Many would agree that 2004 was the harshest winter for China’s securities houses. This is not far from the truth. During that year, the industry’s total losses increased to RMB 15 billion (US$1.81 billion), and a slew of securities houses collapsed amid persistent stock market weakness and stricter regulations.

The brokerage business has been the only bright side to this doom-and-gloom outlook. Compared with shrinking underwriting jobs and loss-making proprietary trading and asset management businesses, the brokerage sector still managed to achieve modest growth despite the year’s difficult market conditions.

At present, China’s stock market is undergoing profound structural changes. Stock market regulators have made great strides in circulating the country’s huge non-tradable shares, as well as encouraging fund injection from various sources into the bourses. As the stock market advances in the right direction, the brokerage sector is bullish on growth.

To foreigners, the current slump facing local securities houses gives them an opportunity to exploit the vast potential of China’s securities brokerage market. As the Chinese government resorts to influencing market forces in order to advance its financial reform roadmap, foreign institutions are set to play an increasingly active role in the sweeping restructuring of the local securities industry.

The new China Brokerage Market report serves to provide foreign investors with an in-depth understanding of China’s securities brokerage market. More information at http://www.chinaknowledge.com/products_detail.asp?category=4&ID=73.

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