JPMorgan is poised to become the first foreign company to take a controlling stake in a Chinese mutual fund after its joint venture partner put a 2% stake of the business up for sale.

The move comes after new rules unveiled last April allowed foreign asset management companies to own up to 51% of their Chinese mutual fund joint ventures, amid Beijing’s bid to further open up China’s financial services sector to foreign players.

JPMorgan Fleming Asset Management currently owns 49% of China International Fund Management, while its joint venture partner Shanghai International Trust owns 51%.

But Shanghai International Trust is auctioning off a 2% stake, according to a statement released Wednesday on the Shanghai United Assets and Equity Exchange. Caixin has learned JPMorgan Fleming Asset Management plans to purchase the stake, which would grant the company a majority stake of 51%.

JPMorgan declined to confirm the deal to Caixin. But the company announced last May that it was preparing negotiations with its joint venture partner in order to raise its stake to a controlling stake.

China International Fund Management was established in 2004. The company managed nearly 180 billion yuan (26.5 billion) of assets as of the end of last March.

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