JP Morgan Chase & Co. said Friday it was granted permission to take full control of a securities business in China, a first for an international firm and a continuation of financial-market liberalization by Beijing at a time of waning confidence in its markets.

After years of slow-walking promises to allow access to its financial markets by Wall Street giants, China has loosened rules to give firms more opportunity to trade securities in the country and build investor bases. More than three decades since China opened stock markets, foreign firms remain minnows compared with China’s own brokerages and banks.

The fresh market access also follows a slump in foreign investor sentiment about China’s financial markets, following regulatory pressure from Beijing on various sectors including technology and education.

Restrictions on Wall Street giants are easing following a slump in foreign investor sentiment about China’s financial markets; evening rush hour in Beijing in January.

Photo: tingshu wang/Reuters

The first phase of a Sino-U.S. trade deal reached in January 2020 committed Beijing to enhance market access in banking services, including by taking into account the assets of their parent companies.

After the trade deal was signed, China in early 2020 permitted some U.S. financial businesses to take majority interests in their securities joint ventures. J.P. Morgan Securities (China) Co., the firm’s local operation, began business in China in March 2020 as a joint venture.

The securities industry has been among the most pleased sectors by China’s response to the trade deal, which also committed Beijing to large purchases of U.S. agriculture and other liberalization.

In a letter to the Biden administration published Thursday requesting the restart of trade talks with Beijing, more than 30 American business lobbies cited China’s outreach to the securities industry as an example of what can be achieved in bilateral negotiations. “For example, the commitment by China to open up its markets to U.S. financial institutions—and other U.S. financial service providers—reflects a hard-won U.S. achievement, and years of work by administrations of both parties,” the letter said.

In welcoming the approval, JP Morgan Chairman Jamie Dimon in a statement described China as “one of the largest opportunities in the world for many of our clients.” In 2020, the firm won approval to take full control of a futures business in China as well as a fund-management business. It plans to offer a range of services in investment and corporate banking, wholesale payments, markets, securities services, commercial banking and asset management.