JPMorgan Chase & Co. said on Wednesday 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 U.S. bank announced in a news release on Wednesday.
China has overhauled regulations to grant foreign companies 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 Group AG became the first to hold a majority stake in a China securities business under the new rules last year. Japanese brokerage Nomura Holdings Inc. got its green light last month.
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,” Jamie Dimon, chairman and chief executive of JPMorgan, said in the news release on Wednesday.
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.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.