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.

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