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Foreign brokers to deal in China
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PostTime:2010-07-30 07:57:18.0 View:19
A move that will open the doors to foreign brokers in China is said to be good for the locals. The manager of the Shanghai office of the Institute of Chartered Shipbrokers (ICS) says Chinese brokers have nothing to fear from new regulations that will allow foreign-owned companies to conduct deals within China. Wendy Zheng says the rules will give more opportunities to domestic and foreign brokers to learn from each other. The most important factor for local brokers is whether they have the ability to work in an industry that spans global borders, she adds. "We believe the new rules would be good for the whole market because the Chinese will be able to get experience from the foreign brokers and the foreign brokers will learn more about working within China. "There is not much opposition to these rules. It is an international market. It does not matter if you are China-based or overseas. What is important is if you have the ability to work in the market," she said. Many brokers working for foreign companies believe the new rules will have little direct impact on the loosely regulated industry. Overseas brokers are not technically permitted to trade within China as the local government does not provide business licences for the industry. They can only trade on deals involving overseas companies, according to current rules from the Shanghai Industrial and Commercial Administrative Bureau. However, many brokers conduct business without formal approval. The government has stepped up its efforts to formally regulate this industry as part of its strategy to transform Shanghai into a modern international hub by 2020. Officials from Shanghai are currently inspecting about eight foreign-owned shipbrokers and are expected to grant business licences in the coming weeks. The regulations will also see Chinese brokers being required to secure new industry certificates by sitting exams. About 135 Shanghai brokers have already sat the exam as part of a pilot scheme. However, being asked to study to meet new regulations has caused some concern for them. One told TradeWinds: "Most of my business is generated from the people that I know and my reputation in the industry. "I don't know why I need a certificate to prove to the government that I can do a job that I have already been doing for many years." The London-based ICS is currently urging the Shanghai government to allow exam exemptions for its members.
Source:Tradewinds Author:Neil Connor Shanghai