(Yicai Global) Sept. 4 -- China’s banking regulator has given the green light to a Japanese firm to establish the first wholly foreign-funded money brokerage in the Chinese mainland, another step in the ongoing opening-up of the country’s vast financial services sector.

The China Banking and Insurance Regulatory Commission yesterday authorized Tokyo-based Ueda Yagi Tanshi to set up the unit. Tentatively known as Ueda Yagi Money Brokerage China, it will settle in Beijing's eastern district of Tongzhou.

The company is brimming with confidence as it expands its money brokerage market in China, said Huang Hong, who is in charge of the subsidiary's setup.

China introduced 11 measures in July last year to further open its financial sector, including supporting foreign capital in setting up fully owned money brokerages, middlemen that arrange lending and borrowing between financial institutions, or cooperating with local businesses to establish joint ventures.

Five money brokerage JVs have been formed since the regulator rolled out measures for pilot currency brokerages in 2005, exemplified by Tullett Prebon Sitico China, invested in by Shanghai International Trust, and Tullett Prebon Europe and Shanghai CFETS-NEX International Money Broking, invested in by China Foreign Exchange Trade System & National Interbank Funding Center.

Ueda Yagi Tanshi was formed in July 2001 through the merger of Ueda Tanshi, founded in 1918, and Yagi Tanshi, and had JPY5 billion (USD47.1 million) in capital as of February 2018. The firm initially focused on the interbank money market, but extended its business to include the foreign exchange and bonds.

Editor: Ben Armour