As China continues to widen its financial openness, sectors such as banking and securities are gradually loosening market entry requirements for foreign institutions.
Earlier this year, BNP Paribas Securities became the fourth wholly foreign-owned securities firm approved by the China Securities Regulatory Commission – joining J.P. Morgan, Goldman Sachs, and Standard Chartered.
Lu Fang, Chairperson of J.P. Morgan Securities China, shared how foreign-owned securities have been doing since their entry.
"As a young company, we've achieved profitability for three consecutive years. Our four licensed businesses, including investment banking, securities brokerage, proprietary trading, and securities research, have all grown steadily. This growth is closely related to China's ongoing financial market opening, providing greater development opportunities for all market participants, including foreign firms," said Lu.
She also noted the growing trend of Chinese companies going global, with J.P. Morgan aiming to bridge China and the global capital markets, leveraging its expertise to support that cross-border growth.
"The establishment, growth and development of J.P. Morgan Securities (China) has been made possible by China's financial market reforms and opening up policies. Riding the wave of removing foreign ownership restrictions in the securities and futures sectors, we eventually became the first fully foreign-owned securities in China. We believe that with relevant authorities continuing to enhance policy transparency and predictability, it will help all market entities including multinational companies better manage risks, serve clients, and further increase China's appeal to global investors," explained Lu.
According to the latest data from Chinese financial authorities, ten foreign control securities firms, nine wholly foreign owned fund management companies and three foreign controlled future firms have been approved to operate in China.
China ramps up opening up efforts to attract foreign securities firms
