(Yicai Global) March 29 - - China's security regulator has granted approval for J.P. Morgan Chase and Nomura Securities to set up their majority-owned brokerage joint ventures as part of China's efforts to further open its financial market.
China Securities Regulatory Commission will actively push the capital market opening process, it said in its announcement.
Swiss investment bank UBS Group clinched a deal to take a majority stake in its Chinese joint venture UBS Securities in December. The bank thus became the first to hold a controlling share of its securities JV in China since Beijing relaxed rules limiting foreign investors' ownership in April to further open its financial sector.
Nomura Securities, J.P. Morgan and Credit Suisse have also applied to set up majority-owned securities JVs in the country.
The establishment of a majority-controlled securities company in China will allow New York-headquartered J.P. Morgan to further strengthen its onshore platform and offer a complete set of services and solutions to both its Chinese and global clients, the company said in its press release.
The Japanese firm will partner with Shanghai-based Orient International Holding to form a new company, CSRC spokesman Chang Depeng said today at the regulator's media briefing.
Editor: Ben Armour