Expanding Chinese capital markets

Chinese authorities and regulators are working to open their capital markets to the world. Outside investors can now participate directly in Chinese markets and mainland companies are growing their presence and reach outside China.

As Chinese capital markets liberalise, Chinese companies need to align their practices to international standards, and gain a foothold with regulators in key capital markets hubs around the globe. Aligning practices and standards allows for Chinese firms to partner and trade with their counterparts in third countries smoothly, and gives outside investors and counterparties confidence that they can rely on local Chinese infrastructure.

Although this process has begun, organisations that make the fastest progress are likely to see the greatest success in benefitting from the new reforms, capturing market share, and winning approval to operate in overseas markets.

Bovill Newgate’s Capital Markets team is uniquely placed to help Chinese exchanges, market infrastructure providers and broking firms to take gain the greatest benefit for China’s growing capital markets liberalisation. Our team combines capital markets expertise from key global markets (London, Chicago, Hong Kong), with local expertise and native Mandarin speakers.

Trading and markets practices

Mature capital markets, such as those in the UK and US, operate sophisticated infrastructure, and are governed by complex regulatory rules. We work with exchanges and capital markets infrastructure providers around the world to design new markets, engage with market participants, and align practices to international standards. Understanding the needs of international clients, and designing contracts, infrastructure and operational processes that conform to international standards is key to winning market share.

International standards

International standards such as the Principals for Financial Markets Infrastructures and the Principals for Financial Benchmarks promote alignment in standards for market operators. Many major firms will seek assurance that Chinese firms are conforming to these standards before they will feel comfortable that they can place business there. We have helped firms to develop frameworks which will meet these international standards, and can also provide an independent third party of assessment against these standards.

Authorisation and registration for capital markets firms

As Chinese firms seek to reach a more international client base, they are increasingly looking to establish regulated entities in key capital markets jurisdictions. We are able to help firms gain a regulatory foothold in four of the world’s key markets – the US, EU, Singapore and Hong Kong. Our expert teams process dozens of regulatory applications across these four jurisdictions every year.