JPMorgan Gets Nod to Take Full Control of China Futures Venture
What’s New: 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.
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.
The background: China agreed to scrap limits on foreign ownership of futures companies starting Jan. 1 as part of the gradual opening-up of China’s financial sector to foreign players as pledged in its phase one trade deal with the U.S.
JPMorgan is also seeking full 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%.
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