CSRC Approves Full JP Morgan Control of Futures Joint Venture

Source: Regulation Asia Editors, Regulation Asia 2020-06-19

JP Morgan will boost its stake in the joint venture from 49% to 100%, making it the first fully foreign-owned futures business in China.

The CSRC (China Securities Regulatory Commission) has approved an application from JP Morgan to take full control of its China futures business.

JP Morgan applied for permission to increase its stake in its futures joint venture in January, from 49 percent to 100 percent.

Currently, Shenzhen Wallace Rand Equity Investment Fund Management holds a 50 percent stake in the JV, while a local investment firm in Jiangsu owns the remaining 1 percent.

With the approval, the local joint venture – known as JP Morgan Futures – will become the first fully foreign-owned futures business in China.

China scrapped its foreign ownership limits for futures companies on 1 January, as part of the gradual opening-up of its financial sector to foreign players.

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JP Morgan is also seeking full ownership of its asset management joint venture – in which it already holder a majority 51 percent stake.

Foreign ownership limits were removed in China’s securities and fund management sectors from 1 April, as agreed in January’s interim Sino-US trade deal.

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JP Morgan’s majority-owned securities company in China already has a securities and futures business licence.

CSRC Approves Full JP Morgan Control of Futures Joint Venture

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