China's securities-market regulator yesterday published rules to enforce risk controls in the brokerage sector, and its top official indicated that foreign companies may find it difficult to invest in local brokerage firms until overhaul of the sector is finished.
"The securities sector is undergoing cleanup now and during the cleanup period, there are some practical difficulties for foreign investors to take stakes in restructuring local brokerages," China Securities Regulatory Commission Chairman Shang Fulin was quoted by the official Shanghai Securities Journal as saying.
That is from a story in WSJ, read it here.
Question: Shouldn't competition through opening up of the sector to both foreign and local entries be one of the main pillars, if not the only pillar, of the clean up process?
Chairman Shang should consult this book on the benefits of financial liberalization.