JPMorgan Chase is still stuck in application stage despite passing an application in May 2018.
Financial industry players from Japan and Europe are breezing past big-time US financial players in forming securities ventures in China as heightened trade tensions hold back the attempts of their Western peers of expanding into the country, reports Nikkei Asian Review.
Although China relaxed foreign ownership limits by scrappling the 20% foreign ownership limits for a single institutions and 25% for a group of overseas investors in domestic banks rules on foreign majority stakes in its financial sector in 2018, authorities have yet to grant such approval for such US-based entities. JPMorgan Chase still stuck in application stage after applying for a majority-owned Chinese security venture in May 2018.
On the other hand, Nomura Holdings applied for permission to set up a securities joint venture in China in 2018 with plans to launch a wealth management unit whilst Daiwa Securities Group has inked a MOU in November 2018 to set up a majority-owned JV and will apply for approval as early as H1 2019.
France’s BNP Paribas also migrated its securities depository management operations in Japan to its securities segment to respond to the investment demand of Japanese investors for Chinese securities. Switzerland’s UBS also became the first overseas bank to be approved for a majority stake last year.
Photo from Lombroso - Own work, CC BY 2.5
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