It targets growing its stake to a majority interest.
JPMorgan Chase is planning to increase its current joint venture in asset management company China International Fund Management Co Ltd to a majority interest, according to a press release.
The move marks the American wealth management company’s deepening offshore business ties with China as the announcement comes at the heels of the appointment of Mark Leung as CEO of the country.
“Our investment in China is a commitment to bring the full force of JPMorgan Chase and our
resources to the country,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “These developments are important for China, the U.S. and global commerce, and an encouraging sign for the world’s two largest economies.”
The Corporate & Investment Bank (CIB) also submitted an application to the China Securities Regulatory Commission (CSRC) with the aim of establishing a fully-integrated securities company in which it would hold a 51% stake.
Having majority control over an integrated securities company in the Chinese market is set to accelerate the company’s dialogue with onshore Chinese clients and double the company’s research coverage of China-listed companies.
“China represents one of the largest opportunities in the world for many of our clients and for JPMorgan Chase,” said Daniel Pinto, CEO of the CIB. “It is a critical component of our growth plans, both globally and in Asia Pacific. Our scale and global capabilities give us a unique ability to help Chinese companies grow internationally and also bring foreign investment and capital to China.”
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