Morgan Stanley moves ahead with plan for wholly-owned futures company in China, as Beijing accelerates financial opening
- CSRC acknowledges Morgan Stanley application to set up wholly-owned futures business in China
- The likely second foreign wholly-owned futures firm after JPMorgan, signals China’s ongoing financial opening, with investment managers Fidelity and Neuberger Berman among firms granted greater access
Morgan Stanley’s ambition for establishing a wholly-owned futures company in China progressed with China’s securities watchdog accepting its application, as the world’s second largest economy accelerated the opening up of its financial markets to foreign capital.
The China Securities Regulatory Commission’s (CSRC) website showed the regulator had accepted Morgan Stanley’s application on Monday.
The move gives hope for the establishment of the second foreign wholly-owned futures company in China – after JPMorgan’s unit got the green light in 2020 – to tap the 534.93 trillion yuan (US$77.74 trillion) futures market.
JPMorgan received the approval in June 2020, soon after China scrapped caps on foreign ownership in the sector dominated by domestic players.
Morgan Stanley has already been preparing the groundwork for this business.
