JPMorgan Chase has won approval to launch a majority-owned Chinese securities business, beating out Wall Street rivals and expanding its reach in the country against a difficult background of US-China trade tensions, reported the Financial Times.
The US bank is to open a new unit offering services including securities brokerage, investment advisory and underwriting and sponsorship, having received approval from the China Securities Regulatory Commission, it said on Tuesday.
The regulator’s decision makes JPMorgan the first US bank to gain approval for a majority-owned securities joint venture in China, concluding a lengthy process with the group having originally applied for permission to do so in May 2018. The bank did not disclose details of who the minority Chinese partner will be.
China is “a critical market for many of our domestic and global clients”, said Jamie Dimon, chairman and chief executive of JPMorgan. “We will continue to invest in and fully support our business in the country.”