China's State Administration of Foreign Exchange (SAFE) announced on Thursday that in order to promote the development of foreign exchange business of non-bank financial institutions, three securities companies, CITIC Securities (600030.SS), Huatai Securities (601688.SS) and China Merchants Securities (600999.SS), were approved to carry out the pilot qualification of settlement and sale of foreign exchange business, allowing them to carry out their own and on-demand settlement under the premise of controllable risks. Selling foreign exchange business and participating in inter-bank foreign exchange market transactions according to regulations.
According to the SAFE press release, the pilot institutions will be guided to carry out the settlement and sale of foreign exchange in a stable and orderly manner, to study and expand the participants in the foreign exchange market, and to promote the healthy development of foreign exchange business of non-bank financial institutions.
SAFE said that the pilot of foreign exchange settlement and sale business of securities companies will help to promote the balanced development of domestic and foreign currency business of securities companies, accelerate the cultivation of international first-class investment banks and promote the high-quality development of the financial industry, and help to expand the participants in the foreign exchange market, enrich the varieties of foreign exchange transactions, and further enhance the depth of the foreign exchange market. To improve the market-oriented formation mechanism of RMB exchange rate.
As early as early as December 2014, Guotai Jun'an has been approved by the State Administration of Foreign Exchange to operate the settlement and sale of foreign exchange business, which is the first securities firm in China to operate this business.
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