The firm is the first U.S. bank to receive approval, and will provide a range of financial services through its domestic entity.
U.S. multinational bank J.P. Morgan Chase has received approval from Chinese regulators to launch its majority-owned securities venture in China, the company announced in a statement on Wednesday.
The approval by the China Securities Regulatory Commission allows J.P. Morgan Securities (China) to commence business. The firm said it will provide securities brokerage, securities investment advisory, and securities underwriting and sponsorship services for Chinese and international clients.
«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 CEO of J.P. Morgan Chase, said in the statement.
Race Among Major Players
Until recently, foreign banks weren’t allowed to hold a majority stake in a joint venture in China. UBS was the first to receive approval under the new rules. The Swiss lender said it would seek full ownership by 2020.
Japanese brokerage Nomura received approval in November, while Goldman Sachs, Morgan Stanley and Credit Suisse are currently awaiting a decision by the regulator.
