JPMorgan given approval for majority-owned securities business in China
China to remove foreign ownership limits on domestic securities companies from 2020
JPMorgan has received approval from Chinese regulators to launch a majority-owned securities business in the country.
The new venture’s services include securities brokerage, investment advisory and underwriting and sponsorship. The bank hasn’t revealed who the minority Chinese partner is.
JPMorgan is the first US bank to be given the go-head from the China Securities Regulatory Commission.
Jamie Dimon, chairman and chief executive of JPMorgan said China is “a critical market for many of our domestic and global clients”.
Despite tensions between the US and China over its trade deal, Beijing has relaxed its regulations, giving foreign business greater access to its highly profitable financial sector.
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Chinese premier Li Keqiang announced in July they would remove foreign ownership limits on domestic securities companies from 2020.
Swiss lender UBS was the first foreign bank to increase its stake in a Chinese securities joint venture to 51 per cent, while Japanese brokerage Nomura was given the thumbs up in November.
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