More intl financial firms accelerate business expansion in China, optimistic about broader opportunities

Multiple international financial firms recently announced establishment of their new branch companies in China or latest progress on local business expansion, indicating their growing attention on Chinese capital market.

Morgan Stanley announced on Wednesday that its wholly-owned subsidiary futures company in China has officially commenced operations, primarily providing commodity futures brokerage services within China.

This is another important milestone for Morgan Stanley's development in China. We will continue to build our comprehensive integrated financial services platform to better serve our domestic and international clients, said Gokul Laroia, CEO of Asia for Morgan Stanley, according to the company's official WeChat account.

Morgan Stanley's futures headquarters is located in Beijing. In the initial stage, it offers brokerage services for commodity futures listed on the Dalian Commodity Exchange, Shanghai Futures Exchange, Shanghai International Energy Exchange, and Zhengzhou Commodity Exchange.

China's Securities Regulatory Commission (CSRC) in May 2023 approved the establishment of Morgan Stanley's futures company in Beijing. CSRC said that the move came as China has stepped up efforts to expand the opening-up of its futures market, Xinhua News Agency reported.

In the future, after obtaining the necessary qualifications, Morgan Stanley's futures company will apply to become a member of the China Financial Futures Exchange, and its brokerage business scope will further encompass equity and fixed income financial futures and options products, said the company.

China's improving business climate and capital market mechanisms are attracting increasing number of foreign investors, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Wednesday, emphasizing that the foreseeable growth potential of China's capital market aligns with foreign investors' original intention of gaining profits in China.

In securities market, US-based Citadel Securities recently submitted an application to establish a wholly foreign-owned securities company in China. CSRC website showed that the application materials were received by the commission on January 17, 2025.

Citi Bank and Mizuho Bank also applied for establishing securities company in China, and the two banks have received feedback from the CSRC respectively in February and September 2024, CSRC's website showed.

In addition, Standard Chartered said on January 17 that the Shanghai branch of Standard Chartered Securities (China) Limited was granted license to operate securities and futures business in China.

José Vi als, Group Chairman of Standard Chartered, said that the company continues to see significant growth potential and opportunities to collaborate, as evidenced by the permission to trade China Treasury Bond Futures and receipt of our Type A Bond Underwriting license, according to a statement sent from the bank to the Global Times on January 12, 2025.

China on Wednesday revealed a guideline, outlining 20 measures to expand financial opening up in the country's pilot free trade zones and a free trade port.

According to this document, foreign financial institutions will be granted the same treatment as their Chinese counterparts when providing new financial services not available in the country at that stage. The country will also support the purchase of certain types of cross-border financial services, facilitate the inbound and outbound fund transfers related to foreign investment, improve arrangements for cross-border flow of financial data, and strengthen regulation of this sector, the guideline said.