The US Securities and Exchange Commission’s (SEC) anti-bribery unit has launched an investigation into JPMorgan Chase’s hiring practices in China.
The commission’s probe focuses on whether the bank hired the children of Chinese officials in order expand its business in the Asian country.
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JPMorgan has recently disclosed in a regulatory filing that it has received a request from the SEC seeking information and documents relating to, among other matters, the firm’s employment of certain former employees in Hong Kong and its business relationships with certain clients.
The investigation centres around the bank’s hiring of Tang Xiaoning, who is the son of a former Chinese banking regulator.
Xiaoning is currently the chairman of the China Everbright Group, a state-controlled financial conglomerate.
The Hong Kong office of JPMorgan has also hired Zhang Xixi, the daughter of a Chinese railway official who was arrested in a bribery scandal.
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By GlobalDataA senior Chinese official told the Financial Times that the government had not launched its own investigation into JPMorgan or its hiring practices in the country, but that the revelations are causing concern because the practice of hiring the children of senior officials to work at financial institutions is very common.
