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15 January 2020
INVESTMENT

JPMorgan seeks full control of Chinese fund venture

JPMorgan is also seeking full control of its futures joint venture in China, raising it from a current 49 per cent stake.

Global financial firms are rushing to capitalise on China’s opening of it $45 trillion financial market/Bloomberg

by Bloomberg

JPMorgan Chase & Co. is seeking 100 per cent ownership of its fund management joint venture in China, a move that comes on top of efforts to take full control of another local unit as the country opens its financial market.

The New York-based bank is in talks with partner Shanghai International Trust Company to acquire its 49 per cent stake in China International Fund Management Company, which oversees CNY 150 billion ($22 billion) of assets. The partners have not yet reached an agreement on a price and the plan is subject to change.

JPMorgan Asset Management last year agreed to pay at least CNY 241.3 million to Shanghai Trust in a bid to boost its stake by two percentage points to 51 per cent—the transaction is yet to be approved by regulators.

Global financial firms are rushing to capitalise on China’s opening of it $45 trillion financial market, with the likes of JPMorgan, Goldman Sachs Group and UBS Group expanding their footprint in everything from futures and brokerages to asset management.

Most foreign financial institutions have identified wealth management as a prime focus as Chinese households are sitting on about $13 trillion in investable assets.

Overseas investors will be able to apply for licences to start wholly owned mutual fund management firms in April 2020 or buy out local funds. Goldman Sachs plans to apply for a licence to run a fully owned asset management operation once the rules allow.

 


RELATED STORIES: JPMorgan Asset Management JPMorgan Chase & Co. Shanghai International Trust Company China International Fund Management Company Goldman Sachs

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