China ups foreign ownership in stockbrokers

Foreign investors will be able to own up to 49% in Chinese securities firms under a new rule introduced by China’s regulators.

The rule, unveiled in a statement from the China Securities Regulatory Commission CSRC, lifts the limit on foreign ownership of securities firms from 33%, but still prevents them from taking control.

China, which once saw foreign capital as a threat and banned it outright, is slowly reversing course.

The shift is partly a response to the improved performance of China’s brokers, which were once considered a sorry mess. But no longer. The move shows that Chinese policymakers now have more confidence...