JPMorgan Gets Beijing Approval for First Fully Foreign-Owned Brokerage Firm

A JPMorgan logo is seen in New York, the United States on January 10, 2017. REUTERS / Stephanie Keith / File Photo

LONDON, Aug.6 (Reuters) – Wall Street investment banking giant JPMorgan (JPM.N) on Friday obtained regulatory approval from Beijing to become the first foreign owner of a brokerage in China.

The move should be seen as the clearest sign yet that China is opening up its capital markets after years of gradual movements and pressure from Washington, especially under former US President Donald Trump.

“The China Securities Regulatory Commission (CSRC) has approved the registration of JP Morgan International Finance Limited by taking 100% ownership of JP Morgan Securities (China) … making it the first foreign company to own entirely a securities firm in China, ”JPMorgan said in a statement.

China was “one of the greatest opportunities in the world,” said bank chief executive Jamie Dimon.

For Beijing, the move comes as it simultaneously clamps down on other parts of its financial markets, such as the foreign equity listings of its largest companies and the way they operate more generally in their country.

Earlier on Friday, the CSRC gave the green light to Fidelity to set up a mutual fund unit in China, while Citi also received final approval for a fund custodian business in China this week.

In June, the world’s largest asset manager, BlackRock, BLK.N became the first to license a wholly-owned mutual fund unit in China. Read more

Report by Samuel Shen in Shanghai and Marc Jones in London; Editing by Mike Harrison

Our standards: Thomson Reuters Trust Principles.

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