JPMorgan Chase & Co (JPM.N) said on Monday it has applied to China’s securities regulator to set up a securities business in which the U.S. bank would own a majority stake under recently relaxed ownership rules.
China in April said it aims to raise foreign ownership limits in securities, fund management and futures firms to 51 percent. The announcement came as the United States and other trading partners complain of unfair limits on competition.
“These developments are important for China, the U.S. and global commerce, and an encouraging sign for the world’s two largest economies,” JPMorgan Chief Executive Jamie Dimon said in the statement.
In the past, Western banks could only own up to 49 percent of Chinese securities joint ventures. The lack of control and limited contribution to revenue have long been a source of frustration.