Five brokerage firms have been given permission to pilot online securities business, marking China's first official approval in the industry, Shanghai Securities News reported yesterday.

The brokerages which have received approval letters from the Securities Association of China are CITIC Securities, Guotai Jun'an Securities, Ping An Securities, Great Wall Securities and Hua Chuang Securities.

Although no specific plan has been released, the e-brokerage service will likely cover online purchases, financial management and stock transactions.

Yu Fenghui, a seasoned stock analyst, said online securities will make opening accounts easier by allowing online registration, which is expected to stimulate the country's bearish stock market.

An unnamed senior manager at Guotai Jun'an hopes the online service will help the company achieve overall restructuring and upgrading of its sales channels, business functions, client management and transaction platforms.

Analysts said the pilot is a move by brokerages hoping to step into the emerging online financial sector following the success of the country's most popular Internet financial product, Yu'ebao. The product has stirred the market by raising unprecedented capital from individual investors since it was introduced last summer.

The five brokerages are not the first in China's securities world to expand their business online.

Sinolink Securities, joining forces with Internet giant Tencent, offered the sector's first online brokerage service, Yongjinbao, in February. It promises low commission charges, quick account opening and consultant services.

Yu predicted the five brokerages will likely adopt a similar approach by seeking deals with experienced Internet companies with established user bases.