New | US brokerage Charles Schwab eyes expansion in China
The US broker became serious about expansion in China over a year ago, when its founder Charles Schwab visited China in September 2013
Charles Schwab, one of the world’s biggest brokerage houses with client assets worth US$2.46 trillion, is eying expansion in China as it seeks to tap growing demand from mainland investors who want to buy foreign securities.
The company is “examining ways it might expand its business in China”, Lisa Kidd Hunt, executive vice president at International Services & Special Business Development at Charles Schwab, said in an interview with the Post. That may include workshops for mainland investors interested about US markets.
“We want to broaden our ability to help and support Chinese investors,” said Hunt. “There is a great opportunity for the industry there to leverage technology.”
James Sun, managing director at Charles Schwab Hong Kong, added that their study is still at a very early stage. He did not elaborate further.
The US broker became serious about expansion in China over a year ago, when its founder Charles Schwab visited China in September 2013 to meet with government regulators about opening a branch in the Shanghai free trade zone. Charles Schwab does not have office in China, but it provides online broking services to mainland clients through its Hong Kong office.
If successful, it will become the first western retail-focused broker to have a branch in China.
Western investors are required to limit their shareholding to a 49 per cent stake when partnering with a local brokerage firm in China. The joint venture can only do investment banking business in the initial two years, such as acting as underwriter and sponsor in the primary market, and after that, it can apply for a broker license to trade stocks.