Bank of America plans to set up a securities firm in China - PingWest

Bank of America plans to set up a securities firm in China

Bank of America plans to set up a securities firm in China

24 hours ago

Bank of America is planning to file an application to set up a securities firm in China, Bloomberg News reported on Monday, citing people familiar with the matter.

Details:

According to the report, Bank of America is expected to seek regulatory approval early next year, and is also planning to submit applications for licenses that will allow it to trade and underwrite stocks and bonds, among other things.

China has stepped up efforts to open its financial sector to help lure in more foreign investment. Since the country scrapped ownership limits on securities and fund management firms in April last year, several Wall Street banks have been approved to wholly own their joint ventures in the mainland to conduct securities business.

In August, JPMorgan Chase got the green light from Beijing to become the first foreign owner of a brokerage in China, while in October Goldman Sachs received approval from Chinese regulators to take full control of its mainland securities business.

Context:

Previously, global investment banks accounted for a small share of equities trading and underwriting business in China, and the opening up in this area means that foreign capital can play a greater role in the lucrative market.

With the steady opening of China's financial sector, more than 100 foreign banks and insurance, securities, payment, and clearing institutions have been approved in recent years, according to the State Council meeting held on July 27.

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