China’s securities regulator approved JPMorgan Chase & Co.’s application to operate the country’s first fully foreign-owned futures business in an industry currently dominated by local players, reported Caixin.
JPMorgan in December applied to increase its 49% stake in its futures joint venture in China to 100%. Before the change, Shenzhen Wallace Rand Equity Investment Fund Management Co. Ltd. held a 50% stake in the venture, and a local investment company in Jiangsu held 1%.
The China Securities Regulatory Commission (CSRC) said in a statement posted on its website that China will continue to deepen the opening of the futures market and bring in more qualified foreign institutions.
JPMorgan is also seekingfull ownership of its Chinese mutual fund joint venture as the caps for foreign shareholders in securities and fund-management firms were scrapped April 1. The bank has already increased the stake in its securities joint venture from 49% to 51%.