(Reuters) – Bank of America Corp plans to file an application to establish a securities firm in China as part of its strategy to expand into the country’s booming financial services market, Bloomberg News reported on Monday. , citing people familiar with the matter.
Bank of America is expected to seek regulatory approval early next year, the report adds, and also plans to submit applications for licenses that will allow it to trade and underwrite stocks and bonds, among others.
The lender’s latest move comes a year after China approved rules allowing global banks to operate fully controlled businesses in the country.
In August, JPMorgan Chase got the go-ahead from Beijing to become the first foreign owner of a brokerage house in China, while in October Goldman Sachs received approval from Chinese regulators to take full control of its business. of titles on the continent.
Western banks have increasingly turned to China’s expanding capital markets, driven by lucrative underwriting fees on stock and bond transactions. Full ownership of business units will allow banks to expand their operations in China’s multibillion-dollar financial sector.
In July, China said it would continue to ease rules allowing foreign banks and insurance companies to enter the market in a bid to attract more foreign investment and strengthen its economy.
(Reporting by Manya Saini in Bangalore; Editing by Krishna Chandra Eluri)