China approves two foreign securities JVs

China's top securities regulator said Friday that it had approved J.P. Morgan and Nomura to set up respective securities joint ventures in the country.

A billboard of J.P. Morgan is displayed on the rooftop of an office building in Hong Kong, China, 6 November 2017. [File Photo: IC]

Last year, the two companies both applied to set up securities joint ventures, in which each will hold a 51-percent stake.

The move was part of the country's efforts to expand opening-up of its securities sector, said the China Securities Regulatory Commission (CSRC).

"CSRC will actively promote the opening-up of the securities market, firmly implement each opening-up policy and continue to well manage the review work of setting up securities JVs or changing their actual controllers according to laws and regulations and in an efficient way," the commission said.

J.P. Morgan said the establishment of a majority-controlled securities company in China will allow the company to further strengthen its onshore platform and offer a complete set of services and solutions to its clients both in China and globally.

Mark Leung, CEO of J.P. Morgan China, considered it "a major milestone" in the company's long history in China.

"China is one of the largest and fastest growing markets in the world and represents one of the most exciting opportunities for many of our clients and our firm," said Nicolas Aguzin, chairman and CEO of J.P. Morgan Asia Pacific.

Calling it an important step in building up the company's China business, Nomura Group CEO Koji Nagai said the new company will initially focus on the wealth management business.

To boost financial opening-up, China unveiled 11 measures last year, including allowing foreign firms to have 51-percent ownership of their brokerage ventures, up from the previous 49 percent.

The country will further expand opening-up of its financial sector, Premier Li Keqiang said Thursday at the opening plenary of the Boao Forum for Asia annual conference in Boao.

China will further facilitate overseas-funded companies in setting up venture capitals and investment companies, and improve relevant rules on overseas investors' strategic investment in listed firms and their mergers and acquisitions of domestic companies, Li said.