(Yicai Global) Aug. 7 -- US investment bank J.P. Morgan Chase may become the first foreign firm to take control of its Chinese asset management joint venture to expand its market share in the world's second-largest economy.

J.P. Morgan paid CNY241.3 million (USD34.3 million) to Shanghai International Trust to buy a 2 percent stake in China International Fund Management as the sole bidder at an auction, according to data from the Shanghai United Assets and Equity Exchange. Before this, the New York-based company already had 49 percent of the equity. 

Last month, Premier Li Keqiang announced China will scrap all ownership limits on Chinese mutual fund ventures by next year, one year earlier than expected. Before that, foreign firms have been able to buy 51 percent of their Chinese JVs' equity, according to the rules implemented in 2017.

"We are looking forward to the next steps to proceed with this acquisition, working closely with our joint venture partners," Dan Watkins, chief executive of the J.P. Morgan's Asia Pacific asset management arm, told Yicai Global. The deal still requires regulatory approvals from the US and China, he added. 

Editor: Emmi Laine