TOKYO -- Sumitomo Mitsui Financial Group has applied to establish a brokerage in China, joining several other Japanese banks in tapping relaxed foreign ownership rules there.

The Japanese megabank and unit SMBC Nikko Securities submitted a joint application dated Tuesday to the China Securities Regulatory Commission. They will ramp up preparations to launch the new company based on the CSRC's decision.

China raised its foreign ownership cap for securities companies to 51% in 2018, and began allowing full foreign ownership in April 2020.

If approved, SMFG would become the third Japanese financial institution to set up a brokerage unit in China, following Nomura Holdings and Daiwa Securities Group.