CBI member, JP Morgan has announced that it has competed the preparatory work to take full control of its securities joint venture in China, and while waiting for final permission from the China Securities Regulatory Commission to officially launch the business, has taken on additional staff to strengthen its business activities in investment banking, research and securities sales.
Mark Leung, CEO of JP Morgan China, said “We think this is the best time for JP Morgan to [become] more deeply involved and invest much more broadly across our product and service platforms. […] JP Morgan welcomes the opportunity presented by China’s new regulation, [which allows for 100% foreign ownership] and the bank will fully leverage the strength in its global network and resources to operate its onshore and offshore China business. […] While it depends on the speed of opening up, I think the conditions are more mature now. […] We are working actively with local regulators to share our experience in enhancing derivatives and securities financing, to help speed up foreign participation into the local market and to provide onshore investors with the best derivatives and securities financing capability that JP Morgan has to offer.”
JP Morgan is also planning to invest further in the growth of the asset management arm of its China business. The bank’s asset management business recently formed a strategic partnership with China Merchants Bank, under which JP Morgan will serve as the preferred product provider for China Merchant Bank’s asset management subsidiary, offering a greater number of offshore and onshore products to Chinese clients.
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