China on Thursday approved JPMorgan’s application to operate its first foreign-owned futures business, as the world’s second-largest economy moves forward with the opening of its multi-trillion dollar financial market. The latest regulatory approval for an American financial services company coincides with tensions between Beijing and Washington, boosted by the COVID-19 epidemic and China’s move to impose security legislation on Hong Kong. JPMorgan allegedly demanded full control of its China futures joint venture last December as Beijing went on to scrap the cap on foreign ownership.
The futures industry in China is dominated by local players. The China Securities Regulatory Commission (CSRC) said in a statement posted on its website that the approval would bring in more qualified foreign players. JPMorgan had no immediate comment
China’s central bank on Saturday gave final approval to a network clearing license for an American Express joint venture, making it the first foreign credit card company to start an onshore operation in China. JPMorgan has received approval to start its futures business in the last six months by the bank to increase its stake in other financial services business in China. Jamie Dimon, CEO of JP Morgan, said earlier this year the cap on foreign ownership of futures companies was taken away. A “significant market” for clients globally, JPMorgan CEO Jamie Dimon said in December that the bank had received approval to set up a multi-owned joint venture, providing brokerage, investment advisory and underwriting services. offer to. In April, the largest bank in the US said it would increase its stake in the Chinese mutual fund venture by 100 percent.
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