JPMorgan Chase has secured the final regulatory approval to open its majority-owned securities joint venture (JV) in China.
The American bank received the green light from the China Securities Regulatory Commission (CSRC) that will enable JP Morgan Securities (China) Company to commence its operations in the country.
The new unit will offer securities brokerage, investment advisory, securities underwriting and sponsorship services to local and international clients.
JPMorgan chairman and CEO Jamie Dimon said: “JPMorgan Chase is very pleased to have established our majority-owned securities company in China.
“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.”
JP Morgan Securities (China) Company will be based in Shanghai at Shanghai Tower in the Lujiazui Financial Zone.
JPMorgan China CEO Mark Leung said: “The establishment of our new securities company further strengthens JP Morgan’s domestic platform and our on-shore capabilities at a time when China’s financial markets continue to evolve and the requirements of our clients continue to develop.”
The American bank has been operating in China since 1921. Its service portfolio includes investment and corporate banking, wholesale payments, securities services, commercial banking and asset management, among others.
The latest move is the result of the opening up of China’s financial sector to boost competition.
Last year, UBS became the first foreign bank to take a controlling stake in a China business under new rules.
Earlier this year, JPMorgan along with Japanese brokerage Nomura received the clearance from the CSRC to launch securities JVs in China. Nomura secured the final nod for the China JV last month.