December 18, 2019 / 11:13 AM / a month ago

UPDATE 1-JPMorgan receives final approval for majority-owned securities venture in China

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HONG KONG, Dec 18 (Reuters) - JPMorgan said on Wednesday it has received the final approval from Chinese regulators to set up a majority-owned securities venture in the country.

The joint venture's services will include brokerage, investment advisory, underwriting and sponsorship, the U.S. bank announced in a press release on Wednesday.

China has overhauled regulations to grant foreign firms greater access to its financial sector that is worth trillion of dollars, including to banks, fund management, brokerages and insurance businesses in recent years.

Swiss lender UBS became the first to hold a majority stake in a China securities business under the new rules last year. Japanese brokerage Nomura Holdings got its green light last month.

Separately, JPMorgan said in August it had won an auction to purchase the shares needed for a majority equity stake in its Chinese asset management joint venture, pending regulatory approval.

"We will continue to invest in and fully support our business in the country, which has become a critical market for many of our domestic and global clients," said Jamie Dimon, Chairman and CEO of JP Morgan Chase, said in the press release on Wednesday.

This week's approval emerged soon after Beijing and Washington signaled they will soon sign an initial agreement to end their 17-month long trade war. (Reporting by Noah Sin and Alun John in Hong Kong, Samuel Shen in Shanghai; Additional reporting by Beijing Monitoring Desk; Editing by Louise Heavens)

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