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China Fund News reporter Han Zhang

Recently, BNP Paribas Securities (China) Co., Ltd. (hereinafter referred to as BNP Paribas Securities (China)) was officially established. The company is the fourth wholly foreign-owned securities firm approved for establishment in China after Goldman Sachs (China) Securities, JPMorgan Securities (China) and Standard Chartered Securities (China).

Not long ago, the CSRC also approved the securities investment fund custody qualification of BNP Paribas (China) Co., Ltd. (BNP Paribas China for short).

BNP Paribas Securities (China) was established

Tianyancha App shows that BNP Paribas Securities (China) Co., Ltd. was established recently. Its legal representative is GUO Yves, Zhiyi. Its registered capital is 1.1 billion yuan. Its business scope is securities business. It is fully funded by BNP Paribas and holds 100% of the shares.

As early as April 2021, BNP Paribas China submitted the approval materials for the establishment of a securities company to the CSRC and was accepted. In April 2022, the CSRC gave its first feedback. In April this year, the CSRC approved the establishment of BNP Paribas Securities (China). The approval showed that BNP Paribas Securities (China) obtained four business qualifications at one time, namely securities brokerage, securities proprietary trading, securities investment consulting, and securities asset management.

Public information shows that BNP Paribas is a leading international financial group in Europe and one of the world's systemically important banks. According to BNP Paribas' official website, its business covers 63 countries and regions and has 183,000 employees. With its global support capabilities, the group has leading platforms and businesses in Europe and has a strong influence in the Americas and Asia-Pacific regions.

In 1860, BNP Paribas opened its first office in Shanghai, becoming one of the earliest foreign banks to enter China.

BNP Paribas once dabbled in domestic securities business. In March 2002, Changjiang Securities and BNP Paribas signed a framework agreement to "establish a Sino-foreign joint venture securities company". In November of the following year, Changjiang BNP Paribas Peregrine Securities, a joint venture between the two parties, opened for business, with BNP Paribas holding a 33% stake.

However, in January 2007, BNP Paribas announced its withdrawal from Changjiang BNP Paribas Peregrine Securities. At that time, BNP Paribas said that the two sides had formed different views on the future development direction of the joint venture. Subsequently, Changjiang BNP Paribas Peregrine Securities was renamed Changjiang Securities Underwriting and Sponsoring Co., Ltd., which is the investment banking subsidiary of Changjiang Securities.

Not long ago, BNP Paribas China was approved for fund custody qualification

In mid-June this year, the CSRC also approved BNP Paribas China's securities investment fund custody qualifications.

In the field of public funds, BNP Paribas Asset Management BE Holding Company, a subsidiary of BNP Paribas, holds a 49% stake in Haifutong Fund Management Co., Ltd. In addition, the bank has also invested in or jointly operated many companies in China, such as investing in Bank of Nanjing and establishing Nanjing Bank BNP Paribas Consumer Finance with Nanjing Bank, operating Sino-Dutch Life Insurance with Bank of Beijing, establishing Jizhi Auto Finance with Geely Automobile, and establishing BNP Paribas Agricultural Bank Wealth Management with Agricultural Bank of China Wealth Management.

A senior executive of BNP Paribas once told our reporter that asset management companies are constantly deploying in China to better understand and invest in China. The Chinese government and regulatory authorities are very supportive of international investors' deployment in China, which will help promote the further development of the two-way opening of the capital market.

Philippe Benoit, the bank's head of strategic business and business transformation, also stressed that the bank will continue to support international investors to increase their investment in China and allow the Chinese market to attract more attention from international investors. Our commitment to China is long-term.

Accelerate the “Beachhead”

The ranks of foreign-funded securities firms continue to expand

In recent years, the opening up of the capital market has been steadily advancing. In March this year, the China Securities Regulatory Commission issued the "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-Class Investment Banks and Investment Institutions (Trial)", which clearly mentioned that it would steadily expand institutional opening up and support qualified foreign institutions to set up institutions in China.

According to the latest list of securities companies released by the China Securities Regulatory Commission, there are a total of 146 securities companies in my country, of which 18 are foreign-controlled securities companies, including 14 foreign-controlled securities companies. Goldman Sachs (China) Securities, JPMorgan Securities (China) and Standard Chartered Securities (China) are all wholly foreign-owned securities companies.

In February this year, the CSRC gave feedback on the application documents of Citigroup Global Financial Holdings Limited to set up a wholly foreign-owned securities company, Citigroup Securities (China) Co., Ltd. In March, Standard Chartered Securities, my country's first newly established wholly foreign-owned securities company, officially started business in Beijing. In April, the CSRC approved the establishment of BNP Paribas Securities (China) Co., Ltd. According to information disclosed by the CSRC, there are also foreign securities companies such as Mizuho Securities, Citigroup Securities, Nikko Securities, and Qingdao Yicai Securities waiting to enter the market.

Industry insiders said that foreign-funded securities firms have their own characteristics. Generally speaking, these companies have gained a global vision from their foreign shareholders and have certain advantages in engaging in certain cross-border businesses. The global business coverage and investment research capabilities of foreign shareholders have become an important source of the global vision and cross-border business strength of foreign-funded securities firms. Overall, foreign capital has certain advantages in foreign institutional client business such as QFII, overseas IPOs, and cross-border asset management.

Editor: Captain

Audit: Wooden Fish

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