November 29, 2001	Thursday	Ramazan 13, 1422

SHANGHAI, Nov 28: China has loosened restrictions on expansion by securities companies to bolster their competitiveness ahead of the country’s admission to the World Trade Organization, a report said on Wednesday.

The China Securities Regulatory Commission has lifted the restrictions ahead of China’s accession to the WTO — expected as soon as next month — the China Securities News reported

“After China’s entry to the WTO, brokerages will face increasingly fierce competition not only from domestic but also from foreign securities firms,” said Meng Qingliang, a capital markets analyst from Haitong Securities.

Foreign brokerages would be allowed to set up joint venture funds under WTO rules, so lifting restrictions on raising capital would strengthen domestic brokerages’ ability to resist future financial turmoil and boost their development in long-term, Meng added.

China’s brokerages formerly had to wait for one year after a capital expansion before being allowed to grow again.

Under the previous rules, brokerages had to show that at least five per cent of expanded registered capital came from the firm’s own business revenue.

Under the relaxed rules, brokerages only have to confirm that they have received shareholder approval for the expansion, and notify the commission of the names of the prospective shareholders and the types of assets they will invest in the company.

rubber output: Chinese tyre manufacturers plan to increase output to meet higher domestic demand and to take advantage of new markets open to them upon China’s entry into the the WTO, Thai rubber exporters said on Wednesday.

Chinese tyre makers told Thai exporters during a trip to several Chinese cities between November 14-21 that they would need more rubber, Choosit Opaswongse, president of the Thai Rubbers Exporters’ Association told Reuters .

“Some said they would double their capacity while the others said they would only slightly increase it on expectations of higher demand from the domestic market and overseas,” he added.—AFP/Reuters