Chinese securities regulators have given the go ahead to joint ventures there by JP Morgan Chase and Morgan Stanley.
That brings the Wall Street banks one step closer to their goal of operating in one of the fastest growing securities markets in the world.
They will be able underwrite stocks and bonds but will have to wait five years before their joint ventures can carry out the more lucrative broking operations.
While foreign banks are attracted to China’s rapidly growing economy and capital markets, finding the right partner for a joint venture and regulatory restrictions have delayed and sometimes derailed their attempts to enter Chinese markets.
JP Morgan will link up with First Capital Securities, a Shenzhen-based brokerage, and hold 33 percent of the venture.
Morgan Stanley meanwhile, is able to move ahead with its new Chinese partner, Huaxin Securities, also known as China Fortune Securities.