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JPMorgan Set to Boost Stake in China Securities Venture to 71%

  • Other shareholders in venture opt out of raising holdings
  • Paves way for JPMorgan to take full ownership of venture

JPMorgan Chase & Co. is poised to raise its ownership in its Chinese securities joint venture to 71%, bringing it a step closer to becoming the first foreign bank to attain full ownership of a firm as the country opens its $49 trillion financial market.

The bank has emerged as the qualified buyer of a 20% stake put up for sale by Shanghai Waigaoqiao FTZ as the other existing shareholders gave up their rights to add to their holdings. The stake will be sold for 178 million yuan ($26 million), according to a statement. The remaining shareholders also agreed to not transfer or dispose of their holdings without approval from the U.S. bank, which currently controls 51%, according to the statement.