By Chen Xu ( 陳旭)
From Economic Observer Online
Translated by Tang Xiangyang
Original article: [Chinese]

China Securities Regulatory Commission (CSRC) has given premission to securities companies to act as asset managers, selling financial products and expanding their business abroad.

For the first time, they will also be able to play a role in issuing bonds for medium-sized and small enterprises.

“It’s normal for employees of international investment giants to knock off at 2 or 3 am. I know you are still far behind them. So when is the right time to clock off?” the regulator's deputy president Zhuang Xin asked a meeting of investment managers. 

They applauded when he said "Never say 'NO' to innovation. You should say 'Good!'" and were excited by the regulator's plans for a long-term incentive mechanism.

The industry had a tough time nine years ago when its debts reached hundreds of billion yuan. After a crisis was averted, strict supervision was imposed, which pretty much made the industry a subsidiary of banking system.

Things have been improving in the past three years. The securities companies' total assets under management is now five times the 2004 amount. 

As well as excitement, there was a mood of uncertainty among the securities managers listening to Zhuang's talk of reform.

“All the restrictions seem to have disappeared. So where should we go?” one of the asked.