HONG KONG: JPMorgan said on Dec 18 that it has received the final approval from Chinese regulators to set up a majority-owned securities venture in the country.
The joint venture’s services will include brokerage, investment advisory, underwriting and sponsorship, the US bank announced in a press release.
China has overhauled regulations to grant foreign firms greater access to its financial sector that is worth trillion of dollars, including to banks, fund management, brokerages and insurance businesses in recent years.
Swiss lender UBS became the first to hold a majority stake in a China securities business under the new rules last year. Japanese brokerage Nomura Holdings got its green light in November.
Separately, JPMorgan said in August it had won an auction to purchase the shares needed for a majority equity stake in its Chinese asset management joint venture, pending regulatory approval.
“We will continue to invest in and fully support our business in the country, which has become a critical market for many of our domestic and global clients,” said Jamie Dimon, Chairman and CEO of JP Morgan Chase.
This week’s approval emerged soon after Beijing and Washington signalled they will soon sign an initial agreement to end their 17-month long trade war. – Reuters
