Wall Street bank JPMorgan Chase has applied to acquire full control of its Guangdong-based futures joint-venture JPMorgan Futures (摩根大通期货).
Sources said to Shanghai Securities News that JPMorgan Chase has applied with the China Securities Regulatory Commission (CSRC) for a majority stake in the joint-venture.
JPMorgan currently holds a 49% in JPMorgan Futures, while Shenzhen Mailande Equity Investment Management Co., Ltd. (深圳市迈兰德股权投资基金管理有限公司) holds a 50% stake, and Jiangsu Van Venture Capital Co., Ltd. (江苏威望创业投资有限公司) a 1% stake.
Should CSRC approve the application JPMorgan Futures will become China’s first foreign-controlled futures company.
JPMorgan Futures was first established in 1996 under the name the Jinsha Futures Jingji Co., Ltd. (金沙期货经纪有限公司).
According to data from the China Futures Association (中国期货业协会) of the end of 2017 its net capital and net assets was 525 million yuan, while its processing fee revenues for that year were 14.4979 million yuan, while its net profits were 41.5733 million yuan.
In December 2019 JPMorgan obtained approval from Chinese regulators to found a majority-owned securities joint-venture – the first Wall Street bank to do so.
UBS obtained approval to increase its equity stake in its Chinese securities venture towards the end of 2018, while Japan’s Nomura grabbed permission for a majority-stake joint-venture in November.