(Yicai Global) April 3 -- J.P. Morgan Asset Management said it has reached an agreement with Shanghai International Trust, enabling it to become the first overseas company to take full ownership of a fund-management joint venture in China.

J.P. Morgan Asset Management expects to proceed with the required steps to wrap up the deal on taking full ownership of China International Fund Management, including seeking regulatory approval, the New York-based company said in a press release today. The parties did not disclose the terms of the agreement, which is also contingent on J.P. Morgan completing due diligence.

At the end of 2019, Shanghai-based China International Fund Management managed more than CNY150 billion (USD21.15 billion) in assets, making it one of the leading Chinese JVs in the sector.

"With a long-established legacy of doing business in China and strong ambitions to strengthen our capabilities in this market, we are pleased to have reached this important milestone," Dan Watkins, Asia Pacific chief executive at J.P. Morgan Asset Management, said in the statement.

China removed the limitations on the ratio of foreign shareholding in securities and fund management firms two days ago, enabling them to form wholly owned units on the Chinese mainland.

"We welcome China's removal of foreign ownership restrictions, enabling us to deepen our long-term involvement with CIFM to 100% ownership," Watkins added.

Founded in May 2004, the JV mainly provides asset management services to Chinese investors such as setting up and managing securities investment funds. J.P. Morgan Asset Management, a unit of J.P. Morgan Chase, has a 51 percent stake at the moment, while Shanghai International Trust and Investment owns the rest.