The China Securities Regulatory Commission (CSRC), the country’s securities watchdog, has cleared the application of JPMorgan to operate the first entirely foreign-owned futures business in the country.
The move is in line with China’s plan to open up its financial services sector to foreign players in order to boost competition.
The regulator intends to welcome more qualified foreign shareholders.
The country eliminated foreign ownership limits of futures companies earlier this year as part of the liberalisation plan.
JP Morgan has been deepening its reach in China even as the country’s trade tension with the US has been mounting amid the Covid-19 crisis.
Last December, JPMorgan received the final regulatory nod to open its majority-owned securities joint venture (JV) in China.
JPMorgan CEO Jamie Dimon has called China a “critical market”.
“We will continue to invest in and fully support our business in the country, which has become a critical market for many of our domestic and global clients,” he noted.
Earlier this week, JPMorgan bought out its Chinese partner’s stake to get sole control of its China mutual fund joint venture (JV).
The bank increased its stake to 100% in the JV China International Fund Management (CIFM) by acquiring the 49% interest of Shanghai International Trust.
Various banking groups have recently made inroads into China with the opening up of the market.