CLSA Ltd will increase its stake in its Chinese joint venture if China eases regulations on foreign investment in the capital industry, company chairman Rob Morrison said during the CLSA China Forum in Shanghai yesterday.

"China's economy is clearly not immune to slowing global demand, but there are a number of factors that will mitigate this," Morrison said. "China, as with Asia as a whole, remains a preferred investment destination for global investors seeking positive returns."

CLSA is the Asian unit of France's Credit Agricole SA.

China currently allows 33 percent foreign funds in a joint venture involved in investment banking and 25 percent foreign stakes in a brokerage business.

In a commitment to the World Trade Organization, China said it will gradually open the industry more to foreign participation.

Partnered with Xiangcai Securities Co, CLSA established China Euro Securities Limited in 2003. CESL was the first joint-venture securities firm approved by the China Securities Regulatory Commission.

CLSA China chairman Wu Changgen said the company was confident about China's economy and estimated growth this year will maintain its 10 percent pace.