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June 3, 2021

JP Morgan applies for full ownership in China securities venture

By Verdict Staff

JP Morgan Chase & Co has reportedly applied to take 100% ownership in its China securities venture as part of its expansion strategy in the country.

The bank has inked commercial agreements with its current partners of securities and asset management ventures, Bloomberg reported citing JPMorgan China CEO Mark Leung.

As part of the move, JPMorgan is ramping up its hiring in China.

The bank is raising its staffing about 16% to 17% a year, Leung told the news agency.

He also said that the bank is looking to take full ownership of the ventures as soon as possible.

“We already have one of the most complete, probably the most complete foreign setup” in China, Leung added.

In March this year, reports suggested that the asset banking arm of banking giant JPMorgan is taking a 10% stake in the wealth management unit of China Merchants Bank.

Besides JP Morgan, a number of foreign banks, including US-based investment giant Goldman Sachs, is also pushing to take its holdings in Chinese ventures towards full control.

Last month, Goldman received an initial regulatory nod in the country for a wealth management joint venture with Industrial and Commercial Bank of China.

JPMorgan wealth and asset division’s acquisitions plans

The asset and wealth management division of JPMorgan is reportedly exploring acquisition opportunities.

JP Morgan Chase & Co head of asset and wealth management Mary Erdoes revealed that the bank is looking at potential deal opportunities, according to a Reuters report.

The JP Morgan asset & wealth management (AWM) division focus on institutional client investments and private banking.

According to Erdoes, the unit has considered a few possible deals and the bar for an acquisition is high.

Erdoes also said that lending at the private bank has jumped 17% so far this year from 2020. She was speaking at a virtual conference hosted by Deutsche Bank.

JP Morgan AWM arm embarked on the road to recovery in Q1 2021, reporting an 86% surge in net income and a 20% increase in net revenue.

The unit’s net income for the three-month period ending March 2021 stood at $1.24bn, versus $669m a year ago.

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