Foreign investors and Hong Kong residents but not mainland Chinese residents

Foreign investors and hong kong residents but not

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Foreign investors and Hong Kong residents (but not mainland Chinese residents) can purchase Chinese shares listed in Hong Kong (H-shares) These shares are issued by offshore Chinese companies or by Hong Kong-headquartered companies that are controlled by or derive significant revenue from mainland Chinese companies: “Red Chip”
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Foreign Investment Banking Activity Most major investment banks have actively pursued business opportunities in China, but tight regulatory controls by the Chinese government have limited the entry of these banks to only certain areas of the domestic market In addition, depending on when the bank entered the Chinese market, the level of authorization has varied according to the legislation in place at that time In general, foreign banks can only participate in domestic securities underwriting through JVs set up with Chinese securities firms where the foreign bank owns no more than a one-third share in the entity Goldman Sachs and UBS set up their JV’s in 2004 and 2005, respectively, and are the only two foreign banks that have been allowed management control over their JVs The three other major foreign banks that have domestic securities underwriting approval (Morgan Stanley, Credit Suisse and Deutsche Bank) only have passive ownership in their JV entities
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Investment Bank Revenue in China Foreign Investment Banks' Securities Business Revenue in China Bank Amount ($m) % Share Bank Amount ($m) % Share 1 Bank of China 44,991.0 7.2 1 Bank of China 50,891.2 6.2 2 China Int'l Capital Corp 40,057.5 6.4 2 Industrial & Comm Bank of China 44,796.4 5.5 3 Industrial & Comm Bank of China 31,410.0 5.0 3 CITICSecurities Co Ltd 42,185.9 5.1 4 Morgan Stanley 29,401.3 4.7 4 China Construction Bank 41,050.4 5.0 5 CITICSecurities Co Ltd 29,339.0 4.7 5 China International Capital Corp 36,267.0 4.4 6 China Construction Bank 26,833.0 4.3 6 Agricultural Bank of China Ltd 29,252.7 3.6 7 Goldman Sachs & Co 24,902.4 4.0 7 Goldman Sachs & Co 28,113.5 3.4 8 Agricultural Bank of China Ltd 23,117.0 3.7 8 UBS 27,680.1 3.4 9 UBS 20,749.0 3.3 9 China Everbright Bank 23,566.0 2.9 10 Bank of Communications 16,235.0 2.6 10 China Development Bank 19,679.4 2.4 Subtotal 287,035.1 45.9 Subtotal 362,940.4 44.2 Total 624,945.0 100.0 Total 821,776.1 100.0 Source: Bloomberg L.P. China M&A, ECM and DCM Revenue Ranking - 2010 China M&A, ECM and DCM Revenue Ranking - 2011
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Emerging Financial Markets Emerging markets countries are countries in a transitional phase
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