On August 24, 2012, the China Securities Regulatory Commission (“CSRC”) issued the draft amendments to the Rules for the Establishment of Securities Companies with Foreign Equity Participation. The public was allowed to submit comments on the draft until September 22, 2012. Under the draft amendments, the cap of the aggregate (direct and indirect) shareholding ratio or ratio of rights and interests of foreign investors in a Sino-foreign equity securities company is increased from 33% to 49%. In addition, the amendments provide that, among all domestic shareholders of a Sino-foreign securities joint venture, there must be a domestic securities company which holds no less than 49% equity or rights and interests of the joint venture. In the case of a domestic securities company converted into a Sino-foreign securities joint venture, there must be a domestic shareholder which holds no less than 49% shares of the joint venture.
The full Chinese text of the draft amendment is available here.