Citic Securities, Huatai Securities and China Merchants Securities are allowed to conduct interbank forex business both on a proprietary basis and on behalf of clients.
The move is part of a broader crackdown on irregular practices and risks in the P2P sector, and will provide greater protection to investors in online lending platforms.
The licences mark the first approvals allowing foreign banks to act as lead underwriter for domestically issued bonds, for both local and foreign companies.
Allowing non-listed enterprises to issue non-public convertible bonds will broaden their funding channels and lower financing costs.
Securities companies are asked to carefully check and rectify any non-compliant stock pledge business and strengthen risk management and controls.
“In response ... all relevant regulatory agencies should take targeted prudential supervision measures … and carry out administrative punishment according to law,” the CBIRC said.
Cutting off payment and settlement services will restrict the funds flowing in and out of P2P lenders, part of a regulatory crackdown on the sector.
To facilitate payments in foreign currencies, SAFE’s Shenzhen branch will move away from the approval-based system to shorten settlement to just minutes rather than hours.
The PBOC will encourage merger talks instead of bankruptcies when dealing with problematic financial institutions.
The Chinese securities watchdog updated three draft regulations last week. For investors, it means both opportunity and challenge.