Morgan Stanley has secured final approval to establish its futures business in China, becoming the second major U.S. bank to enter the country’s derivatives market. This move signifies a critical step into the world’s second-largest economy, opening new opportunities for growth.
The newly created unit, Morgan Stanley Futures (China), is now listed as a licensed institution by the China Securities Regulatory Commission, marking a significant milestone. The listing was confirmed on Friday through a regulatory filing.
A Morgan Stanley spokesperson expressed the bank’s readiness to engage in the market. “We will continue to work closely with relevant regulators and futures exchanges, and we look forward to launching the business soon,” the company stated. This approval allows Morgan Stanley to service domestic clients and cater to offshore investor needs under China’s qualified institution program.
JPMorgan Chase & Co paved the way in 2020, becoming the first sizable foreign bank to own a fully licensed futures unit in China.
China’s futures market is substantial, with trading volumes reaching 568 trillion yuan ($79.92 trillion) in 2023, a 6% increase from the previous year. This massive growth highlights the market’s potential and the significant role it plays in the global financial landscape.
Morgan Stanley’s entry underscores growing foreign interest in China’s evolving financial markets, a sign of deepening economic engagement.