JPMorgan Chase has obtained approval from Chinese regulators to launch its own majority-owned securities business in the Middle Kingdom.
The US bank announced on Tuesday that the China Securities Regulatory Commission (CSRC) had approved its launch of a majority-owned joint-venture (JV) to provide securities brokerage, investment advisory, underwriting and sponsorship services.
JPMorgan originally applied for the JV in May 2018, without revealing details on the identity of its minority Chinese partner.
Since early 2018 China has touted its push for greater opening of its financial sector, amidst intensifying trade tensions with the United States.
Chinese regulators allowed HSBC to obtain a majority stake in a securities JV in 2017, while UBS increased its stake in its Chinese securities JV to 51% last year.
In July the Chinese central bank announced that it would rescind restrictions on foreign ownership of securities and fund management ventures starting from 2020.
In October Citigroup announced that it would seek to obtain full ownership of a Chinese securities business in 2020 in light of the rules change, unwinding its JV with Orient Securities in which it owned 33% of equity.
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