JPMorgan seeks majority stake in China securities firm

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JPMorgan Chase & Co, in a move to take advantage of the relaxation of ownership rules, said on Monday it had submitted an application to the Chinese securities regulator for setting up a new onshore securities business in which the US bank would own a 51 percent stake.

The bank’s asset and wealth management unit is also working on increasing its current joint venture stake to a majority interest, subject to an agreement with its joint venture partner and the relevant authorities, it said in a statement.

JPMorgan also said it had appointed Mark Leung as the chief executive of its China business.

The submission of the application to the regulator marks a step towards JPMorgan’s return to China securities business after 2016 when it sold its 33 percent holding in a similar venture to its local partner.

China issued rules in late April that permit foreign banks to apply to increase their stakes to 51 percent in securities companies in the country. Previously, foreign companies could only hold a 49 percent stake.

Source(s): Reuters