The Obama administration hailed pledges from China for greater access to the securities and insurance markets in the Strategic and Economic Dialogue.

China agreed to let foreign banks raise their stake in domestic-securities joint ventures to as much as 49 per cent, a US official said. Authorities will also consider curbing the power of state-owned enterprises by pushing them to raise dividends, while American companies will be given an easier path to offering car financing, according to the official.

US Treasury SecretaryTim Geithner, speaking on the final day of the cabinet-level talks in Beijing, said the two nations were building stronger economic ties.

Morgan Stanley and JPMorgan Chase are among the US banks that may gain more control over underwriting operations in China, the second-biggest market for share sales last year after the United States. Goldman Sachs and UBS are the only foreign firms to currently…