JPMorgan Applies to Launch Joint-Venture Brokerage in China
May 10 2018 - 11:40AM
Dow Jones News
By Allison Prang and Emily Glazer
JPMorgan Chase & Co. is seeking approval from a Chinese
regulator to launch a joint-venture brokerage in the country,
becoming the latest bank to explore the opportunity after Chinese
authorities loosened rules on foreign firms controlling such
ventures.
J.P. Morgan Broking (Hong Kong) Ltd., a unit of the company, has
applied to seek a 51% stake in a joint-venture brokerage in China,
said Gao Li, a spokeswoman for the China Securities Regulatory
Commission, on Thursday. The CSRC will review the application, the
spokeswoman said.
A person familiar with the matter said JPMorgan's strategy in
China is to invest and learn more about doing business in the
country. JPMorgan hopes to incorporate more of its corporate
bankers and cover more clients, this person said, adding that the
regulatory process will likely take time.
JPMorgan had established a Chinese onshore investment-banking
joint venture in 2011 with First Capital Securities Co. It owned
33.3% of the venture, but in 2016 entered talks to transfer the
stake.
China's securities regulator said earlier this week that Nomura
Holdings Inc., a Japan-based financial-services company, was also
looking to establish a 51% stake in a joint venture. In addition,
UBS Group AG has applied for a controlling stake in its existing
joint venture in China.
In April, the country's securities regulator released guidelines
permitting foreign companies to control 51% of local securities
joint ventures. The shareholding restriction for foreign financial
firms is set to be lifted in three years.
--Stella Yifan Xie contributed to this article.
Write to Allison Prang at allison.prang@wsj.com and Emily Glazer
at emily.glazer@wsj.com
(END) Dow Jones Newswires
May 10, 2018 11:25 ET (15:25 GMT)
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