U.S.-based JPMorgan Chase & Co. unit JPMorgan Asset Management won an auction to buy an additional 2% stake in its Chinese joint venture, London's Financial Times reported Aug. 6, citing Dan Watkins, Asia-Pacific CEO of the asset manager.

The stake purchase would bring JPMorgan's stake in China International Fund Management to 51% and make it the first foreign company to own a majority stake in a Chinese asset manager. The deal will be subject to regulatory approvals in the U.S. and China, Watkins said. JPMorgan will buy the stake from its Chinese partner, Shanghai International Trust Corp. Ltd.

The development comes as China has been stepping up to open its financial sector to foreign investors. Chinese authorities recently said they plan to remove foreign ownership limits of securities, insurance and fund management firms by 2020, a year earlier than planned.