Morgan Stanley has received final approval to launch a futures business in China, becoming the second foreign bank with full ownership of such a venture, Reuters reports.

The bank is now officially listed as a licensed institution by the China Securities Regulatory Commission (CSRC) through its newly established unit, Morgan Stanley Futures (China).

The approval allows Morgan Stanley’s new business to serve domestic clients or cater to the demand of offshore investors under China’s qualified institution program.

“We will continue to work closely with relevant regulators and futures exchanges and we look forward to launching the business soon,”  the firm said in a statement to Reuters.

The bank began its efforts to establish a futures business in China in April when the CSRC initially accepted its application to set up a unit in the country.

Morgan Stanley follows in the footsteps of JPMorgan Chase, which became the first major foreign bank to fully own a futures unit in China in 2020.

Both banks’ moves align with the China State Council’s strategy to introduce more futures contracts and accelerate efforts to bring in more overseas investors.

Morgan Stanley is the latest bank to expand its presence into China as HBSC acquired Citi’s retail wealth management portfolio in the country, which consisted of investment assets and deposits worth $3.6 billion.

As part of the sale, HSBC also gained Citi’s associated customers in 11 major cities in mainland China, along with more than 300 of Citi’s employees.