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Abstract：Due to capital market’s reform and the movement of the conversion into an international currency of China’s Renminbi，China takes a relatively cautious attitude in opening its securities industry.The foreign securities companies which seek to penetrate into China are currently restricted in terms of a stockholding ratio，business scope or entering into China via a partnership with a China’s local company.
1 Outlook and Possibility for Entering
into China1.1 Desire for growth via a partnership between China and
a foreign firm
A foreign firm’s advantage in a new business scope will become another source of generating profits.An increase of collaboration between China’s securities firms and their foreign counterparts and the establishment of a joint security firm will facilitate a diversification of a business type.
Also，a joint venture or a partnership holds a potential advantage in its management technology as well as the exchange of research and human power.
1.2 Inevitable penetration and development of foreign
capital
A Chinese securities market as an emerging capital market has a limitless market potential as an advantage in financing via a lasting economic development.A foreign capital securities firm has a risk-averse ability through a distribution investment into diverse regions.A foreign securities firm will get a chance to understand a characteristic of a Chinese market and invest in China via a partnership with its Chinese counterpart.The business scope of managing assets by a foreign capital company has relatively entered a maturity stage and the complimentary in business through a partnership with a Chinese firm will largely increase.In China’s securities industry，foreign stockholders’ role will be gradually highly evaluated and a good number of foreign-affiliated firms will necessarily list their stocks on a Chinese securities market.
2 A Way of Penetration
2.1 The only 2 ways for entering into China’s securities
industry
There is a prerequisite for a Chinese securities market to take a globalization process；standardization and marketization.For that reason，China is forecasted to maintain a regulation of protecting a capital market in China along with capital market reforms for a certain period.The current supervisory regulation and a limited open policy do not allow a foreign-based firm to establish its independent securities company to run a business.Chinese regulatory authorities only allow for two ways to penetrate into a Chinese securities market：either a partnership with a Chinese firm or by purchasing the shares of a Chinese securities firm inside China.In the event of the former，participating in management is limited but the latter is possible to participate in management.However，a firm which considers participating in management by purchasing the shares of a Chinese securities firm in China must keep in mind that it takes more than 2 years to do so.Thus，it is critical to make a thorough investigation prior to penetration into a Chinese securities market，set up a development plan to meet a futuristic strategy and clearly select the things which can be done and the things that are to be done.
2.2 Entering into a Chinese securities industry via
restructuring of China’s securities firm
In the past，China’s securities firms were comparatively in a disadvantageous position in opening a global financial market.The firms were opaque and hugely untrustworthy in accounting or management as a whole，which restricted an efficient capital management.What is most important is that Korea-affiliated financial organizations must make a thorough preparation for the sphere in which they can do the best and not lose a favorable opportunity for them to penetrate into a Chinese market.
2.3 Consideration on penetration into a Chinese
market via Investment Bank business
As a strategy of capturing a niche market，Korean financial institutions have performed real estate project financing，investment on NPL and PRE-IPOs.As the openness of the Chinese authorities is judged to be difficult to develop at a fast speed，it is judgingly desirous that Korea-based financial organizations must enlarge their research and investment on IB businesses via a partnership with a global maker or a local financial body in China.
References
[1]Korea Securities Dealers Association，Analysis of Financial Market in China2008
[2]Woori Investment & Securities Company，Research Paper，2008
[3]HanHwa Securities Company，Research Paper，2008
1 Outlook and Possibility for Entering
into China1.1 Desire for growth via a partnership between China and
a foreign firm
A foreign firm’s advantage in a new business scope will become another source of generating profits.An increase of collaboration between China’s securities firms and their foreign counterparts and the establishment of a joint security firm will facilitate a diversification of a business type.
Also，a joint venture or a partnership holds a potential advantage in its management technology as well as the exchange of research and human power.
1.2 Inevitable penetration and development of foreign
capital
A Chinese securities market as an emerging capital market has a limitless market potential as an advantage in financing via a lasting economic development.A foreign capital securities firm has a risk-averse ability through a distribution investment into diverse regions.A foreign securities firm will get a chance to understand a characteristic of a Chinese market and invest in China via a partnership with its Chinese counterpart.The business scope of managing assets by a foreign capital company has relatively entered a maturity stage and the complimentary in business through a partnership with a Chinese firm will largely increase.In China’s securities industry，foreign stockholders’ role will be gradually highly evaluated and a good number of foreign-affiliated firms will necessarily list their stocks on a Chinese securities market.
2 A Way of Penetration
2.1 The only 2 ways for entering into China’s securities
industry
There is a prerequisite for a Chinese securities market to take a globalization process；standardization and marketization.For that reason，China is forecasted to maintain a regulation of protecting a capital market in China along with capital market reforms for a certain period.The current supervisory regulation and a limited open policy do not allow a foreign-based firm to establish its independent securities company to run a business.Chinese regulatory authorities only allow for two ways to penetrate into a Chinese securities market：either a partnership with a Chinese firm or by purchasing the shares of a Chinese securities firm inside China.In the event of the former，participating in management is limited but the latter is possible to participate in management.However，a firm which considers participating in management by purchasing the shares of a Chinese securities firm in China must keep in mind that it takes more than 2 years to do so.Thus，it is critical to make a thorough investigation prior to penetration into a Chinese securities market，set up a development plan to meet a futuristic strategy and clearly select the things which can be done and the things that are to be done.
2.2 Entering into a Chinese securities industry via
restructuring of China’s securities firm
In the past，China’s securities firms were comparatively in a disadvantageous position in opening a global financial market.The firms were opaque and hugely untrustworthy in accounting or management as a whole，which restricted an efficient capital management.What is most important is that Korea-affiliated financial organizations must make a thorough preparation for the sphere in which they can do the best and not lose a favorable opportunity for them to penetrate into a Chinese market.
2.3 Consideration on penetration into a Chinese
market via Investment Bank business
As a strategy of capturing a niche market，Korean financial institutions have performed real estate project financing，investment on NPL and PRE-IPOs.As the openness of the Chinese authorities is judged to be difficult to develop at a fast speed，it is judgingly desirous that Korea-based financial organizations must enlarge their research and investment on IB businesses via a partnership with a global maker or a local financial body in China.
References
[1]Korea Securities Dealers Association，Analysis of Financial Market in China2008
[2]Woori Investment & Securities Company，Research Paper，2008
[3]HanHwa Securities Company，Research Paper，2008