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Nisha Gopalan

Wall Street May Rue China’s Opening

Global banks have been clamoring for access to the mainland market. There could be good reason to pause.

Wait for it.

Wait for it.

Photographer: Ricky Wong/Bloomberg

Wall Street, be careful what you wish for. Getting that level playing field you want in China might backfire — and not just because its stock market is in the dumps. 

Shortly after President Donald Trump’s visit to Beijing last year — when he complained bitterly about China’s unfair trade practices — officials decided to relax regulations limiting foreign ownership of banks and securities firms. Overseas players could start holding 51 percent of domestic brokerages, up from 49 percent — a cap that will be eliminated after three years.