Days ago, China Securities Regulatory Commission (CSRC) further arranged the direct investment business in pilot securities companies. The pilot units will be expanded. Qualified securities companies can apply to CSRC for direct investment businesses.

The screened qualified securities companies should be with at least RMB2B of net capital, sound internal control and risk management system, strong investment banking business. Moreover, they should have taken the lead underwriters for at least ten projects in aspects of shares and convertible bonds, or the lead underwriting amount should be at least RMB15B.

In September 2007, CITIC Securities and CICC were granted to conduct direct investment business pilots. The pilot practice illuminates that professional subsidiaries of Securities companies effectively controlled risks and obtained expected effects, which accumulated experience for further pilots.