J.P. Morgan continues to increase its exposure to China amid a historic opening of its financial services industry, and the approval of the first fully-owned foreign futures company marks yet another milestone for foreign participation in the mainland’s financial sector.
China's securities regulator, which announced the approval on Thursday (in Mandarin), said it would bring in more qualified foreign shareholders as it further opens up the market.
The U.S. investment bank previously set up a joint venture futures company with Chinese broker Zhongshan Futures to serve institutional investors and give the bank its access to the Shanghai Futures Exchange, as well as commodities exchanges in Zhengzhou and Dalian.
China Opening
J.P. Morgan reportedly sought full control of the joint venture in December 2019, as Beijing moved to scrap caps on foreign ownership.
The firm has been deepening inroads into the Chinese market, and upped its stake in asset management joint venture China International Fund Management (CIFM) to 100 percent in February, following increased ownership from 49 percent to 51 percent in August last year.
Its activities also extend into securities, where the bank was approved to commence a majority-owned business in December 2019.
