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Chinese regulator approves JPMorgan, Standard Chartered fully-owned ventures on the mainland
- JPMorgan’s acquisition of a 49 per cent stake in China International Fund Management from Shanghai International Trust was approved on Thursday
- Standard Chartered has also been cleared to set up a wholly-owned securities brokerage, allowing the bank to offer underwriting and asset management services
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JPMorgan Chase gained full control of its China mutual fund, joining rival Manulife Financial in buying out local partners to secure full ownership of a business in the 26 trillion yuan (US$3.8 trillion) market.
The China Securities Regulatory Commission (CSRC) approved the US bank’s acquisition of a 49 per cent stake in China International Fund Management (CIFM) from Shanghai International Trust, according to a statement from the regulator on Thursday.
The watchdog also approved Standard Chartered to set up a wholly-owned securities brokerage on Thursday, saying the London-based bank can offers services such as underwriting and asset management. The registered capital of the new brokerage stands at 1.05 billion yuan, according to a separate statement from the CSRC.
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The permissions came after China quickened approvals for global firms towards the end of 2022, when Manulife’s acquisition was cleared and Fidelity International and Neuberger Berman Group’s new units started operations. The expanding ranks of wholly foreign owned players are intensifying competition in a market embracing brightened prospects after China reversed its stringent Covid-19 curbs.
“This is just the latest in a series of approvals for foreign groups to build and expand in China,” said Peter Alexander, managing director at Shanghai-based consultancy Z-Ben Advisors. “The China reopening trade is about much more than just investing into stocks.”
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