JP Morgan applies to set up majority-ownership brokerage in China

BEIJING - JP Morgan Broking (Hong Kong) Limited has applied to set up a majority ownership securities firm in China as the country takes steady steps to open up the sector to foreign investment.

The company plans to hold 51 percent of the new firm's stakes and has submitted application materials to China's top securities watchdog, according to Gao Li, spokesperson with the China Securities Regulatory Commission (CSRC).

The CSRC will review the application materials based on related laws and compliance regulations in an efficient manner, Gao said in a statement released Thursday.

China rolled out guidelines in late April allowing foreign investors to set up securities trading firms with holding status as part of China's opening-up efforts in the financial sector.

Following the policy change, UBS has applied to raise its shareholding proportion in UBS Securities from 24.99 percent to 51 percent, and Japan's largest securities trader Nomura has released a plan to set up a holding firm.