American investment bank Goldman Sachs has signed an agreement to take 100% control of its securities joint venture (JV) in China, in the latest sign of China’s financial sector liberalisation.

The bank established the JV – Goldman Sachs Gao Hua (GSGH) – with Beijing Gao Hua Securities in 2004.

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As per an internal memo sent to the bank’s employees, the New York-based bank now intends to raise its holding in the JV from 51% to 100% by buying the stake it does not already own.

It has also started the process of getting the go-ahead from regulators. The bank’s spokesperson in Hong Kong confirmed the news.

The memo read: “One hundred percent ownership of our franchise on the mainland represents a significant commitment to and investment in China, outlined in our China strategic plan.

“This focuses on growing and strengthening our existing China businesses, expanding our addressable market and investing in talent and technology.”

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In March this year, China cleared Goldman Sachs as well as Morgan Stanley to take controlling stakes in their local securities units.

In recent times, several US banks have tapped China’s $50trn financial services sector despite continuing trade tensions between the two nations.

The opening up of China’s financial services sector is aimed at boosting competition.

Last month, JPMorgan increased its stake in its China securities JV to 71% from 51%.

In September, Citi became the first US bank to obtain China fund custody licence.

In August this year, BlackRock secured the regulatory approval to launch mutual fund unit in China.

China recently also gave the approval to the wealth management JV between BlackRock, Temasek and China Construction Bank.

Meanwhile, earlier this year, a report said that Goldman Sachs is in talks with the wealth management arm of ICBC to launch a majority-owned JV in China.