On October 11, 2012, the China Securities Regulatory Commission (“CSRC”) issued the Decision on Amending the Rules for the Establishment of Securities Companies with Foreign Equity Participation, which took effect immediately. As provided in the draft version of the amendments issued on August 24, 2012, the cap on 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%. Among the 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 amendments is available here.