Quinlan & Associates Sees China's Securities Fees Revenue Rapidly Growing
According to the new report by a financial consultancy Quinlan & Associates, revenue from securities fees in China is projected to more than double to 103 billion dollars in the coming 6 years as China’s securities companies will be looking for some new investment and funding ideas. It should also be driven by growing cross-border deal activities. Total securities revenue pool is expected to hit 103 billion dollars by 2023.
Zhu Guangyao, China's vice finance minister, declared foreign companies could own 51% of securities joint ventures, and their domestic partners didn’t necessarily have to be securities firms. This regulation should give foreign banks the advantage from China’s surging fee pool.
Quinlan & Associates Chief Executive Officer Ben Quinlan noted: "Foreign banks can't compete with the local players on price or balance sheet, but they can when it comes to creating complex products that aren't available on the mainland, and in cross border activities".
The financial consultancy also warned that trade friction with the US might protract the easing of restrictions on foreign holdings in the Chinese securities sector.