HONG KONG, Nov 5 (Reuters) - Morgan Stanley ( MS ) has

won final approval to launch a futures business in China via a

newly established unit, becoming the second major U.S. entrant

in the derivatives market of the world's second-largest economy.

Morgan Stanley Futures (China), wholly owned by the U.S.

bank, was for the first time listed as a licensed institution by

the China Securities Regulatory Commission on Friday, a filing

from the regulator showed.

A company spokesperson confirmed the approval, which permits

the U.S. bank to serve domestic clients or cater to the demand

of offshore investors under China's qualified institution

programme.

"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.

Rival JPMorgan Chase & Co ( JPM ) became first sizable

foreign bank to fully own a futures unit in China in 2020.

Trading volume of China's futures market reached 568

trillion yuan ($79.92 trillion) in 2023 across six main futures

exchanges, up 6% from a year ago.

($1 = 7.1067 Chinese yuan renminbi)