CLSA banks on limit changes for foreigners

CLSA banks on limit changes for foreigners


CLSA Ltd said yesterday it will seek to increase the stake in its Chinese mainland investment banking venture if regulators ease restrictions over foreign participation in the nation's capital industry.

"We hope regulations will change," said Rob Morrison, CLSA's chairman and chief executive officer, at a media briefing in Shanghai.

"If regulations change, we would like to increase investment in the venture."

CLSA, which owns 33 percent of China Euro Securities Ltd, last month got Fortune Securities Co as its new Chinese partner for the investment-banking unit after Xiangcai Securities Co quit due to financial problems.

Chinese authorities now cap overseas ownership in a mainland investment bank at 33 percent, slightly higher than a 25 percent limit assigned on domestic commercial lenders.

Morrison said he is confident over the growth prospect for CLSA, which has been profitable since 2003 and benefited from its booming underwriting business over conversions of non-tradable yuan-backed shares and initial public offerings.

CLSA, the Asian unit of France's Credit Agricole SA, will cooperate "as much as possible" with Fortune Securities on the investment-banking side but has no immediate plan to invest in the Chinese partner as regulations don't allow the move, according to Morrison.