China may welcome its own diversified financial powerhouses soon. Size and breadth, however, probably won’t be enough to solve the structural contradictions that have long plagued Chinese capital markets. Local media Caixin reported over the weekend that China might grant brokerage licenses to two banks as part of a pilot program that could create a full-service banking giant like JPMorgan Chase. In a Glass-Steagall fashion, Chinese commercial banking is separated from investment banking, with a few exceptions. China’s securities...

Source: Wall Street Journal June 29, 2020 08:01 UTC