China approves two JV securities firms

BEIJING - China's securities regulator has approved the establishment of two joint venture (JV) securities firms between the mainland and Hong Kong businesses.

The two JVs, HSBC Qianhai Securities Ltd and East Asia Qianhai Securities Ltd, were approved under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement, Deng Ge, spokesperson for the China Securities Regulatory Commission, told a press conference Friday.

HSBC Qianhai Securities Ltd., with a registered capital of 1.8 billion yuan ($265.9 million), is the mainland's first securities firm controlled by an overseas shareholder, Deng said.

HSBC, in partnership with state-owned Qianhai Financial Holdings, holds a 51-percent stake in the JV.

Teaming up with the Qianhai Financial Holdings and two other mainland companies, the Bank of East Asia owns 49 percent of the JV, which has a registered capital of 1.5 billion yuan.

Both JVs will be based in the city of Shenzhen.