JP Morgan attempts control of China futures JV
JPmorgan (is seeking 100 per cent ownership of its futures joint venture in china, Bloomberg reported on Monday, citing a person familiar with the matter.
caps on foreign ownerships of futures companies will be scrapped as of January 1, 2020, as part of the gradual opening up of China’s financial sector to foreign players.
china’s futures industry is currently dominated by local players.
A filing to the China Securities Regulatory Commission dated December 25 showed that J.P. Morgan Futures co. had applied to make a change of more than five per cent in its shareholding structure, though did not give any further details.
If the U.S. bank is able to increase its stake, it would be the first foreign player to have majority ownership of its China futures business.
The CSRC announced in October a firm timetable for next year’s opening up of its securities brokerage and mutual fund sectors, as well as its futures industry.
UBS became the first foreign bank to reach 51 per cent ownership of its china securities joint venture under the new rules in late 2018.
Jpmorgan received final approval earlier this month to set up a majority owned securities JV, and, in August, purchased the shares needed for a majority equity stake in its chinese asset management joint venture, pending regulatory approval.