What’s new: Morgan Stanley is planning to set up a futures company in China’s $80 trillion market.
The China Securities Regulatory Commission (CSRC) received the U.S. financial services giant’s application on Monday, according to the regulator’s website.
If approved, the unit would be the second wholly foreign-owned futures business in the world’s second-largest economy, following a rival owned by JPMorgan Chase & Co.
Last year, China’s futures exchanges generated a total turnover of 535 trillion yuan ($80 trillion), according to industry group the China Futures Association.
The background: China in 2020 scrapped the caps on foreign ownership of futures companies, securities firms, mutual fund companies and life insurers as part of its ongoing opening-up of the country’s financial markets.
In February, Morgan Stanley got the green light 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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