Securities industry in China

Securities industry in China is an article on the securities industry in mainland China.

In mainland China, the China Securities Regulatory Commission is the primary regulator; however, it has delegated certain activities to a self-regulatory organization called the Securities Association of China (SAC).

Mainland China began an IPO sponsor system began in 2004, which is similar to a sponsor system in Hong Kong began in 1999. In order to be publicly listed in China, a prospective listing firm must be sponsored by a securities company (investment bank) and the sponsor must assign sponsor representatives to the listing firm. This In 2012, the SAC took over registration of sponsor representatives. The exam to become a sponsor representative is extremely difficult, with a one percent passing rate, and sponsor representatives have been highly compensated, with $1 million annual salaries in 2010. Despite this, they are viewed as often ineffective.

Mainland shares are known as A-shares and are not typically available for purchase by foreigners. B-shares are available to foreigners, but are reputed to be more risky as they are available for less desirable companies. H-shares are for mainland China companies which are traded on the .

Institutional investors can apply to become Qualified Foreign Institutional Investors (a program which began in 2002) and then are allowed to buy A-shares; the minimum assets under management was reduced from $5 billion to $500 million in 2012.

2010, there are 106 Members of Securities Association of China

Domestic rankings in 2010

2. Net brokerage revenue

3. Total assets

Source: Securities Association of China

Global rankings in 2010 & 2011Q1 1. Sponsored deals

Source: Bloomberg

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