(Yicai Global) Aug. 9 -- The Chinese authorities have approved J.P. Morgan to become the first overseas company to fully own a securities brokerage in the country.

The China Securities Regulatory Commission has given the green light to the New York-based investment bank taking complete ownership of J.P. Morgan Securities China from its four Chinese shareholders, J.P. Morgan said in a statement on Aug. 6.

“The opportunity to establish and operate a fully-owned securities venture in China is another important milestone in this critical market,” said Filippo Gori, chief executive officer at J.P. Morgan Asia Pacific. It also “further strengthens J.P. Morgan’s domestic platform and on-shore capabilities at a time when China’s financial markets continue to evolve and the requirements of our clients are growing.”

J.P. Morgan Securities China was set up as a joint venture in 2019. It provides securities brokerage services, investment advice, underwriting and sponsorships to clients. J.P. Morgan invested CNY408 million (USD61 million) for an initial 51 percent stake. Last October, it paid CNY178 million to buy an additional 20 percent from Shanghai Waigaoqiao Free Trade Zone Group.

The US banking giant also has another China first to its name. It was the first foreign bank to wholly own a Chinese futures business, as the CSRC approved its application to buy the 51 percent of J.P. Morgan Futures it did not own. In 2020, it also agreed with its Chinese partner to gradually increase its stake in China International Fund Management to 100 percent.

Editors: Tang Shihua, Futura Costaglione