Business / Markets

Five Chinese brokers granted online business access

(Xinhua) Updated: 2014-04-08 17:32

BEIJING -- Five brokerage firms in China have been given permission to pilot online securities business, marking the country's first official approval in the industry, Shanghai Securities News reported on Tuesday.

Five Chinese brokers granted online business access

Five Chinese brokers granted online business access

The brokers, having received approval letters from the Securities Association of China (SAC), include CITIC Securities, Guotai Junan Securities, Pingan Securities, Greatwall Securities and Hua Chuang Securities.

Although no specific plan has been released to the public, the e-brokerage services are expected to cover online purchases, financial management and stock transactions.

Yu Fenghui, a seasoned stock analyst, told Xinhua that online securities will make opening accounts easier by allowing online registration, which is expected to stimulate the country's bearish stock market.

An unnamed senior manager from Guotai Junan Securities hopes online services will help the company achieve overall restructuring and upgrading of sales channels, business functions, client management and transaction platforms.

Analysts said the pilot is a move by brokers hoping to step into the emerging online financial sector following the success of the country's most popular Internet financial product, Yu'ebao. The product has stirred the market by raising unprecedented capital from individual investors since it was introduced last summer.

The five brokers are not the first in China's securities world to expand their business online.

Sinolink Securities, joining forces with Chinese Internet giant Tencent, offered the sector's first online brokerage service, Yongjinbao, starting in February 2014. Yongjinbao promises low commission charges, quick account opening and consultant services.

Yu predicted the five brokers will likely adopt a similar approach by seeking cooperation with experienced Internet companies with established user bases.

Currently, China's brokerage firms are looking to expand to more lucrative services, such as assets management, instead of depending exclusively on commission fees.

Yu noted the brokers' qualifications are still subject to approval from the China Securities Regulatory Commission (CSRC), though Yu expected they will be granted soon.

A spokesman from the CSRC said the regulator has not received specific details of the SAC's approval, but pledged monitoring of brokerages will not change and targeted measures will be rolled out soon to spur Internet finance.


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