JP Morgan announces plans to set up securities business in China
American bank JP Morgan Chase has submitted an application to China’s securities regulator to set up a new brokerage business in which the bank would own a 51 per cent stake.
The move from the US’ largest bank comes just a few weeks after China relaxed regulations on foreign ownership over local financial companies – previously, foreign companies could only hold 49 per cent ownership.
This will be the banks second attempt at a major foray into the Chinese market, after it sold off a 33 per cent stake in a similar company back in 2016.
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The bank’s asset and wealth management unit is also working to increase its holding to a majority interest, subject to an agreement with its joint venture partner in China and the relevant authorities.
It’s unclear how long the approval process will take.
The joint venture would let JPMorgan trade Chinese stocks, bonds and other securities on behalf of local clients.
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“We’re building here for a hundred years,” said Jamie Dimon the bank’s CEO last Tuesday in a Bloomberg Television interview. “One day you’ll probably have a tower here that looks like the tower we have in New York.”
JP Morgan’s attempt to gain access to the Chinese securities market is the third move from an international bank after China eased regulations, following Switzerland’s UBS and Japan’s Nomura.