JPMorgan Chase seeks full control of its China futures joint venture

JPMORGAN Chase & Co. wants 100% ownership of its China futures joint venture. — REUTERS

JPMORGAN CHASE & Co. is seeking 100% ownership of its futures joint venture in China, according to a person with knowledge of the matter, making it the first global bank to take advantage of the opening of the nation’s futures market, where transactions topped $30 trillion in 2018.

The US bank plans to raise its current 49% stake in JPMorgan Futures Co., said the person, asking not to be identified because the matter is private. The onshore venture has applied for a major shareholding change involving more than a 5% stake, according to a Dec. 25 filing to the China Securities Regulatory Commission, which didn’t give additional details.

JPMorgan declined to comment on the shareholding change plan.

Starting with its futures and insurance markets, China will enact the most sweeping changes in decades from early next year to allow the likes of JPMorgan, Goldman Sachs Group, Inc. and BlackRock, Inc. to expand their footprint in China and compete for a slice of its growing wealth. Global firms may plow 7 trillion yuan ($1 trillion) to 8 trillion yuan of assets onshore in the next few years, Huang Qifan, vice-president at China Center for International Economic Exchanges, said last month.

Overseas companies currently have a tiny presence in China’s futures market which is dominated by nearly 150 local players. JPMorgan set up its joint venture in 2007 while UBS Group AG controls a futures subsidiary through its onshore securities outfit.

JPMorgan Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its “full force” to China. The New York-based firm last year became the first US bank to receive Chinese approval to take majority ownership of a securities joint venture. — Bloomberg