JPMorgan Wins China License as Financial Opening Approaches

(Bloomberg) -- JPMorgan Chase & Co. was approved for a securities business license by Chinese regulators, clearing another hurdle for the U.S. bank to expand in the world’s second-biggest economy as it opens its $40 trillion financial market.

The securities and futures permit will allow the bank to provide securities brokerage, underwriting and investment advisory services in China, paving the way for the bank’s majority-owned company to start operations, the New York-based bank said in a press statement.

The New York-based firm earlier this year become the first U.S. bank to receive Chinese approval to take majority ownership of a securities joint venture.

China is speeding up the opening of its financial market, and will next year give the go-ahead for foreign securities firms to take full ownership of joint ventures they have in the country. Officials are seeking to draw in foreign investments to support economic growth, which has cooled amid a trade war with the U.S. and a crackdown on lending at local banks after years of rapid growth.

JPMorgan Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its “full force” to China. The bank started winding down its six-year venture with First Capital Securities Co. in late 2016, seeking to free itself up to get more control in a new setup.

To contact Bloomberg News staff for this story: Alfred Liu in Hong Kong at aliu226@bloomberg.net;Evelyn Yu in Shanghai at yyu263@bloomberg.net;Cathy Chan in Hong Kong at kchan14@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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With assistance from Bloomberg