JP Morgan seeks full control of its China futures business

JPMorgan Chase has applied for approval for an 100 per cent ownership of its futures joint business in China.

The American bank currently holds a 49 per cent stake in Guangdong-based JPMorgan Futures and has now submitted an application to the China Securities Regulatory Commission to take a majority stake in that business.

Foreign ownership approval from Chinese regulators often takes months and sometimes applications must be resubmitted, people familiar with the matter said.

So far, UBS is the only global investment bank to take foreign control of a Chinese futures business. In 2016 it gained full ownership of its Shanghai-based futures unit.

It is yet unclear if JPMorgan will receive approval and how long it will take.

In December, JPMorgan became the first Wall Street investment bank to win approval to launch a majority-owned Chinese securities business. UBS was granted permission to increase its stake in its Chinese securities venture in late 2018.

Japanese bank Nomura officially received the go ahead in November to operate a majority-stake joint venture.

Caps on foreign ownerships of futures companies have been scrapped as of 1 January 2020, as part of the gradual opening up of China’s financial sector to foreign players.

The bank has not commented on the situation.

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