Standard Chartered and JPMorgan Chase have been approved to underwrite debt offerings from the Chinese government, the Wall Street Journal reported. The banks became the second and third foreign institutions to be allowed to sell government bonds in China, following HSBC, which was approved in 2004. Demand for treasury bonds has grown rapidly in China, with bond prices getting higher and yields falling even as inflation has risen. Officials from JPMorgan said they expect the underwriting business to be only slightly profitable – the bank is required to underwrite 0.2% of each offering – but the main benefit could be a closer working relationship with the Ministry of Finance.