Overseas firms could be allowed to own majority stakes in
local ventures as soon as this year, and they may ultimately be
able to take full control, said the people. Regulators also plan
to give foreign-owned joint ventures permission to expand into
areas beyond stock and bond underwriting, they said, asking not
to be named as the deliberations are private.
Loosening restrictions that currently limit overseas banks
to 49 percent ownership will let them more effectively compete
with incumbents such as Citic Securities Co. in Asia’s largest
equities market. Greater foreign participation could also help
China develop its securities industry, more than a decade after
Goldman Sachs Group Inc. set up a joint venture in Beijing.
China is considering sweeping changes to its
securities industry that would allow foreign banks to control
their local joint ventures and broaden their offerings, said
people with knowledge of the matter.