Securities Industry's WTO Commitments

According to the "Schedule of Specific Commitments on Services List of Article 2 MFN Exemptions" on China's accession into the World Trade Organization (WTO):

1. Foreign securities institutions may engage directly (without a Chinese intermediary) in a B-share business.

2. Upon the WTO accession, representative offices in China of foreign securities institutions may become special members of all Chinese stock exchanges.

3. Upon the WTO accession, foreign service suppliers will be permitted to establish joint ventures (JV) with a foreign investment of no more than 33 percent to conduct a domestic securities-investment fund-management business. Within three years of China's accession, foreign investment will be increased to 49 percent.

4. Within three years of the WTO accession, foreign securities institutions will be permitted to establish JVs with a foreign minority ownership not exceeding one-third to engage (without a Chinese intermediary) in underwriting A shares and in underwriting and trading B and H shares, as well as government and corporate debt fund launches.