Chinese Broker Guotai Junan to Open UK Entity in European Push

China’s fourth-largest investment bank Guotai Junan Securities Co. said it plans to set up a wholly-owned entity in UK, the latest Chinese bank to expand operations in Europe amid US-China tensions.

The broker has received a so-called no objection letter from the China Securities Regulatory Commission to set up an European subsidiary and will start operations after obtaining a license from the UK’s Financial Conduct Authority, the bank said in a statement Friday. The new entity will offer an array of financial services including trading, market making and investment advisory.

The so-called Shanghai-London stock connect program, which initially allows listed ...