Hong Kong local securities firmwith mainland capital、Joint venture layout among Internet financial platforms，It is becoming an important path for private capital to enter the securities industry.。Under Jack MaYunfeng FundEstablished Hong Kong securities firms that have invested in sharesRuidong GroupRecently announced that，Will initiate the establishment of a mainland joint venture with Shi Yuzhu's Giant Investment and other entities。According to relevant arrangements，The joint venture can apply forDomestic brokerage license，Currently awaiting approval from the China Securities Regulatory Commission。
this means，After Alibaba obtained a banking license，It is expected to further enter the domestic securities business field through the joint venture structure of Hong Kong securities companies.。Although domestic brokerage licenses have not yet been fully opened to private capital,，But with the help of Hong Kong financial institutions and the CEPA framework，Private capital and Internet platforms are exploring more feasible "overtaking on curves" paths。
Ruidong Group’s core arrangements for jointly establishing a mainland securities company
Ruidong Group announced on February 4 that，Regarding the establishment of a mainland securities joint venture announced in September last year，The company has signed a sponsor agreement with Yuyue Technology and Shi Yuzhu’s Giant Investment，Plan to establish a joint venture in Shanghai。The agreement will take effect upon approval by the China Securities Regulatory Commission。
The registered capital of the joint venture is RMB 1 billion，The equity structure and capital contribution arrangements are as follows:：
- Ruidong Financial holds 43% of the shares，and invested 430 million yuan。
- Giant Investment holds 30% of the shares。
- Yuyue Technology holds 27% of the shares。
All parties agree，The total investment amount of the joint venture will reach 3 billion yuan。After the joint venture is established，Ruidong Group will control the majority of seats on the joint venture's board of directors，The joint venture will therefore become a subsidiary of Ruidong Group。
Under the CEPA frameworkHong Kong financial institutionslicense access opportunities
Ruidong Group’s expectations，The Group and its joint venture partners will rely on the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) to promote relevant establishment matters。According to CEPA rules，Qualified Hong Kong-funded financial institutions can follow Mainland China’s relevant regulations for Mainland shareholders of non-securities companies.，Establishing a fully licensed joint venture securities company in a specific field。
2013August，Supplement 10 to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) signed by the State Council of the People's Republic of China and the Government of the Hong Kong Special Administrative Region of the People's Republic of China.：Mainland securities companies、Securities investment consulting institutions further open to Hong Kong and Macao，Allow Hong Kong capital that meets the conditions to establish foreign-owned securities companies、Australian financial institutions，respectively in Shanghai in accordance with relevant mainland regulations.、Guangdong Province、Shenzhen City will each establish a fully licensed securities company jointly owned by the two places.；Hong Kong capital、The combined shareholding ratio of Australian capital can reach up to 51%，Mainland shareholders are not limited to securities companies。
Alibaba’s strategic background in entering the securities industry through Hong Kong securities firms
Ruidong Group is an established securities company in Hong Kong.，Last year, it acquired shares from Jack Ma’s private equity fund Yunfeng Fund.。Jade Passion, a 21% subsidiary of Yunfeng Holdings, invested HK$800 million last year，Subscribed 400 million shares of Ruidong，Equivalent to approximately 56% of the enlarged issued share capital。
From the perspective of market development logic，Alibaba relies on Hong Kong’s local brokerage platform and CEPA joint venture mechanism，It is expected that under the background that domestic securities licenses have not yet been fully opened to private capital,，Advance access to the securities service market。This layout not only extends Alibaba’s license territory in the financial field，It also reflects the impact of Internet platforms on securities、Wealth management and asset management business entrance attaches great importance to。
Policy evolution of private capital entering the securities and futures service industry
Since 2014, the state has begun to promote private capital to enter the securities industry.。2014May，The State Council issued "Several Opinions on Further Promoting the Healthy Development of the Capital Market" (the "Nine New Articles")，It is clearly proposed to improve the competitiveness of the securities and futures service industry，Relax business access。
Relevant policy directions include implementing open and transparent、An orderly management system for securities and futures business licenses，Research securities companies、Fund management company、Futures company、Cross-licensing of securities investment consulting companies, etc.，And support other qualified financial institutions to apply for securities and futures business licenses on the basis of risk isolation.。at the same time，The policy level also clearly supports the entry of private capital into the securities and futures service industry.。
In terms of comprehensive management，Policies support securities and futures operating institutions and other financial institutions on the premise that risks are controllable，mutual holding、Exploring comprehensive management through equity participation。subsequently，China Securities Regulatory Commission promotes the establishment of Internet Securities Professional Committee，Further releasing signals for the integrated development of securities business and Internet finance。
Integration trend of Internet financial platform and securities business
April last year，Zhang Yujun, then assistant to the chairman of the China Securities Regulatory Commission, invited Ant Financial Group、Baidu、tencent.com、Executives from JD Finance and other companies exchange experiences with the securities and futures industry，Later, he expressed his support for "Internet + asset management"，And expressed recognition for Internet fund sales and other businesses。
but，Up to now，Officials have not yet fully liberalized the access mechanism for the securities industry.。In this context，Alibaba entered into the domestic securities license application through the structure of Hong Kong securities firms and joint ventures，Reflects the Internet financial companies’ commitment to license resources、Continuous layout of customer portal and asset management ecosystem。
Similar cases：Hong Kong securities firms participate in joint venture securities companies in Mainland China
Alibaba is not the only market player to take a similar path。Guangdong Rongsheng Supermicro announced last month that，Plans to cooperate with Hong Kong securities firm AMTD、Shenzhen Chuangsheng jointly established a joint venture securities company in Guangdong。
The shareholding ratio of the joint venture securities company is：
- Rongsheng Super Micro holds 30% shares。
- Hong Kong AMTD holds 51% of shares。
- Shenzhen Chuangsheng holds 19% of the shares。
The relevant announcement clearly mentioned CEPA Supplement 10，He also stated that this investment aims to “seize the development opportunities brought about by financial reform and financial cooperation between Guangdong and Hong Kong.，Develop new business and profit growth points”。
Hong Kong Information Communication Professional Observation：The layout of cross-border financial licenses requires attention to compliance paths
we think，Hong Kong financial institutions and mainland shareholders jointly establish joint venture securities companies，The core value is not just about obtaining a single license，What’s more, it’s about using the compliance framework to complete the integration of cross-border financial resources.。Whether it is securities、asset Management、Fund sales，Or a broader wealth management business?，License access、Equity structure、regulatory approvals、Actual control arrangements and subsequent compliance operations，They are all key factors that determine the success or failure of the project.。
For enterprises that plan to participate in mainland or overseas financial business layout through Hong Kong entities，The license type should be systematically evaluated in the early stage、regulatory requirements、shareholder qualifications、capital arrangements、Business boundaries and compliance operation capabilities，avoid approval、Structural risks arise in operations and subsequent supervision。
About Hong Kong Xintong
Hong Kong Xintong focuses onHong Kong Securities and Futures Commission license、Hong Kong Insurance Broker License、Hong Kong MSO Licenseandmoneylenders licenseApply for service，Assist customers to applyUS MSB license、NFA、RIA、Canadian MSB license、Mainstream overseas financial licenses such as Australia and Mexico，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableCayman Islands Offshore Company Registration、Offshore fund establishment and global compliance operations and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。
