(Yicai Global) Feb. 22 -- China's top securities regulator has approved the establishment of a joint venture securities firm between a mainland investment group and a financial firm from Taiwan.

The joint venture will be set up by state-owned Xiamen Financial Investment Group Co. Ltd. and Taiwan's President Securities Corp., with the mainland side holding a 51-percent stake, said China Securities Regulatory Commission (CSRC) in a statement on its website.

With registered capital of CNY1.2 billion yuan (USD171 million), the new company will be based in Xiamen of southeast China's Fujian province and engage in stock brokerage, proprietary trading and securities underwriting and sponsorship, according to the CSRC.

The two shareholders shall complete the business registration procedure in the next six months, said the CSRC.

Xiamen Financial Investment Group said in a note that it expects the new brokerage to serve hundreds of thousands of Taiwan-invested firms in the Chinese mainland as well as other companies on the southeastern coast.