The China Securities Regulatory Commission (CSRC) has given its nod to JPMorgan and Standard Chartered to establish fully-owned joint ventures in the country.

This clearance allows JPMorgan to take full control of China International Fund Management (CIFM) by picking a 49% stake from Shanghai International Trust, reported Bloomberg.

Besides, the US bank’s wholly foreign-owned asset management entity, which was established in 2016, will be integrated under the JPMorgan Asset Management (JPMAM) operating model in China. 

The latest development comes over two years after JPMorgan made an announcement to take over CIFM.  

JPMorgan Asset Management Asia Pacific CEO Dan Watkins said: “Our strategic goal is to significantly grow JPMAM China to become the leading foreign asset manager in China and contribute to JPMAM becoming the leading manager of China assets to global investors.”

In addition, CSRC approved Standard Chartered to establish a fully-owned securities brokerage in China.

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The approval will see the British bank providing a number of services, including underwriting and asset management.

It follows China’s decision to accelerate the process of allowing global firms to open their branches in the country, added the Bloomberg report.

Last year in November, Canada’s Manulife Financial obtained regulatory clearance to fully own its Chinese mutual fund unit.

In the same month, US-based asset management firm Neuberger Berman received nod from Chinese securities watchdog to establish a fund unit in the country.

Expansion of fully-owned global entities in China has increased competition in the market where the potentials are high after the country rolled back its severe Covid19-induced curbs.