Bank of America plans to apply to set up securities unit in China

New York

BANK of America is planning to apply to set up a securities firm in China, joining a push by rivals including

JPMorgan Chase and Goldman Sachs into the US$54 trillion financial market.

The bank aims to apply for regulatory approval early next year, people familiar with the matter said, asking not to be named discussing a private matter. It plans to submit applications for licences allowing it to trade and underwrite stocks and bonds as well as hedge risk, one of the people said. The timing is subject to change. A spokesman for the lender declined to comment.

The Charlotte, North Carolina-based bank is a latecomer after China last year allowed global banks to operate fully controlled units with firms such as Goldman and JPMorgan already gaining approval. With billions of dollars in potential profits to chase, global banks have so far been undeterred by the rising political tension and a broad crackdown by Beijing on its private sector that has roiled markets.

Bank of America had so far been the only major US bank to decide against pursuing a securities venture in China, but it has large exposure to other banking areas in the world's second largest economy. The lender has also been building out its investment banking in the broader Asia-Pacific region, catching up with its main rival JPMorgan. BLOOMBERG