Approved by the Securities Regulatory Commission! Wall Street giants set up companies in Beijing

Every editor: Zhang Jinhe

According to the news from the China Securities Regulatory Commission on May 26, in order to implement the relevant work arrangements for expanding the opening of the futures market to the outside world, the China Securities Regulatory Commission recently approved Morgan Stanley (Morgan Stanley) to establish Morgan Stanley Futures (China) Co., Ltd. in Beijing.

In the next step, the China Securities Regulatory Commission will continue to deepen the opening up of the futures market, support qualified overseas institutions to invest in domestic futures companies, continuously improve the quality of futures market operations, and serve the high-quality development of the real economy.

This means that the second wholly foreign-owned futures company in China has landed.

On June 18, 2020, the China Securities Regulatory Commission approved the application for equity change of JPMorgan Chase Futures Co., Ltd. (JPMorgan Chase Futures for short). After this change, JPMorgan Chase Brokerage (Hong Kong) Co., Ltd. will hold 100% of the company’s equity. JPMorgan Chase Futures became the first domestic futures company fully controlled by foreign capital.

Morgan Stanley, commonly known as “Morgan Stanley” in the financial industry, is an international financial services company established in New York, USA. According to its 2022 financial report, the company is a world-leading international financial services company with business scope covering investment banking, securities, wealth management and investment management services. The company has offices in more than 41 countries around the world, providing services for enterprises, government agencies, institutions and individual investors.

In 2022, the company’s total revenue will reach US$53.7 billion, a year-on-year decrease of 10.19%; net profit will be US$11.179 billion, a year-on-year decrease of 26.06%. As of yesterday’s close, the company’s latest stock price was US$83, with a market value of US$138.62 billion.

In addition, Morgan Stanley and other foreign giants are not only targeting the Chinese futures market.

On February 3, the China Securities Regulatory Commission legally acquired Morgan Stanley Huaxin Fund Management Co., Ltd. (“Morgan Stanley Huaxin Fund”) with a capital contribution of 128 million yuan (accounting for 51% of the registered capital). Dissent and approve Morgan Stanley’s wholly-owned holding to become the actual controller of Morgan Stanley Huaxin Fund.

Gokul Laroia, CEO of Morgan Stanley Asia, said: “Morgan Stanley has been deeply involved in the Chinese market for nearly 30 years, and we have been committed to building an industry-leading financial services company with comprehensive business integration to meet domestic The ever-evolving needs of foreign customers.”

Looking back at the opening up of the capital market in recent years, the breadth and depth of China’s foreign-funded institutions’ entry has been continuously strengthened, and the firm will and determination to deepen reform and opening up have been fully demonstrated. In April 2018, the Chinese regulatory authorities successively canceled the restrictions on foreign shareholding ratios for banks and financial asset management companies, and relaxed the upper limit of foreign shareholding ratios for securities companies, fund management companies, futures companies, and personal insurance companies to 51%. Institutional “trendmakers” have embraced the historic opportunity of the opening up of the times, and have increasingly become a force that cannot be ignored in China’s capital market.

According to reports, at present, 12 foreign-controlled or wholly-owned securities fund futures companies, including JPMorgan Chase, Goldman Sachs, Nomura, and UBS (UBS), have successively been approved, and 3 foreign-funded banks including Standard Chartered Bank have obtained fund custody qualifications in Huazi Bank. Foreign private equity funds such as Bridgewater and BlackRock have successively established 38 wholly-owned subsidiaries. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, commented at the fifth Hongqiao International Economic Forum: “Foreign fund management institutions have brought global asset management models, investment concepts, investment strategies and risk control experience to China, which has played a role in enriching the structure of my country’s fund industry. important role.”

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