JPMorgan Submits Application for Full Control of China Securities Venture

   By Yifan Wang 
 

JPMorgan Chase & Co. has submitted an application to Chinese regulators to take full control of its securities venture in the country, the latest move by the U.S. bank to push its expansion in the world's second-largest economy.

The bank has been working with local regulators since last year and has secured necessary commercial agreements from existing partners to gain 100% ownership of the currently majority-controlled securities business, Mark Leung, the bank's chief executive for China, said in an interview with Bloomberg Television. It has also obtained partners' nod to seek full control of its asset-management venture, he added.

To aid the aggressive expansion plans, JPMorgan has been increasing its staff numbers by about 16% to 17% a year, he said.

Big U.S. banks have been increasingly seeking to make inroads into China's booming financial market, as Beijing opened up the industry to U.S. institutions as a major compromise in the U.S.-China trade deal.

JPMorgan in March agreed to pay $410 million for a stake in a Chinese wealth-management business, marking the first time a Chinese bank opened up its wealth-management subsidiary to a foreign strategic investor. It has also obtained approval to take full ownership of a futures venture.

"This is a huge market, with an even bigger potential. So no one can afford to miss it." Mr. Leung said, referring to China.

Write to Yifan Wang at [e-mail]

(END) Dow Jones Newswires

June 03, 2021 07:03 ET (11:03 GMT)

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