Can a securities company set up a financial subsidiary?

A securities company may set up a financial subsidiary. A securities company and its subsidiaries or subsidiaries controlled by the same securities company may not engage in similar businesses with conflicts of interest or competitive relations.

With the approval of China Securities Regulatory Commission, a securities company may set up a wholly-owned subsidiary, or jointly set up a subsidiary with other investors who meet the requirements of shareholders of a securities company as stipulated in the Securities Law.

Other investors mentioned in the preceding paragraph shall help subsidiaries to improve their governance structure, enhance their competitiveness and promote sustainable and standardized development. Being a financial institution, it should have certain advantages in technical cooperation, personnel training, management services or marketing channels.