New rules for asset management biz of securities firms

The China Securities Regulatory Commission on Friday released new regulations for the asset management businesses of securities companies, to ease the administrative approval process and broaden the investment scale.

The administrative examination and approval process for collective financing products will be removed. The new investment plans should now be registered with the Securities Association of China after their debut, the CSRC said.

The securities companies' collective financing products can be invested into low-risk wealth management plans, and investment instruments in the inter-bank market, according to the CSRC.

Margin trading will be allowed for collective asset management plans, which means that the securities companies can lend their stocks and gain interest income to increase the value of assets.

The enlargement of the investment scale for the asset management businesses is expected to increase financial product innovation and provide diversified services for investors, an official from the CSRC said at a press conference.

More measures will be released by the end of the year to diversify the products and services of the securities companies and boost the growth of the industry, the official added.