What’s new: Morgan Stanley has gotten the green light to set up shop in China’s multitrillion-dollar futures market.
The China Securities Regulatory Commission (CSRC) said in a statement Friday that it had approved the U.S. financial giant to establish a Beijing-based futures company, after accepting its application in April.
The subsidiary would be the second wholly foreign-owned futures business in the world’s second-largest economy, following JPMorgan Chase & Co.’s local unit.
Last year, China’s futures exchanges generated a total turnover of 535 trillion yuan ($80 trillion), according to the China Futures Association.
The background: In 2020, China scrapped the limits on foreign ownership of futures, securities and mutual fund companies as well as life insurers as part of the country’s ongoing opening-up of its financial markets.
In February, Morgan Stanley got the nod from the CSRC to take full ownership of its Chinese mutual fund joint venture, Morgan Stanley Huaxin Fund Management Co. Ltd.
Related: Morgan Stanley Wins Control Over China Fund as Competition Heats Up
Contact reporter Zhang Ziyu (ziyuzhang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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