China Huarong launches brokerage business

China Huarong, one of the asset management corporations originally tasked with disposing of the non-performing loans of the country's banks, has launched a brokerage unit, the Wall Street Journal reported. Beijing-based Huarong Securities has registered capital of US$200.7 million, the bulk of which has been provided by its parent group. The other investor is China Gezhouba Corp, a hydroelectric dam construction company involved in the Three Gorges Dam project. The new securities venture represents another potential partner for foreign investment banks keen to enter China's brokerage industry. The government has promised to lift the current ban on joint venture securities firms by the end of the year.