JPMorgan is set to increase its holding in its securities joint venture (JV) in China to 71%, as the country continues its financial sector liberalisation.
The American lender has now emerged as the potential buyer of a 20% stake in the JV.
Go deeper with GlobalData
According to a stock exchange filing, the stake has been put up for sale by Shanghai Waigaoqiao FTZ for CNY177.7m ($26.02m).
The deal, if materialised, could raise JPMorgan’s stake in the JV to 71% from the existing 51%.
The bank emerged as the only eligible buyer for the stake as the other shareholders relinquished their rights for the acquisition.
JPMorgan’s China foothold
JPMorgan has been making inroads into China lately.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThis was made possible by the move of the China Securities Regulatory Commission (CSRC) to remove foreign ownership restrictions in the fund management and securities businesses.
Last December, JPMorgan received the final regulatory nod to open its majority-owned securities JV in China.
This June, the bank also got the green light to operate the first entirely foreign-owned futures business in China.
The bank also agreed to buy out its Chinese partner’s stake to get complete control of its China mutual fund JV, China International Fund Management.
The bank would reportedly have to pay at least $1bn to proceed with the buyout.
China move by other firms
In recent times, several foreign players have deepened their hold on China’s financial market.
Recently, BlackRock secured regulatory approval to set up mutual fund unit in China.
China also gave the go-ahead to the wealth management JV between BlackRock, Temasek and China Construction Bank.
In June this year, Credit Suisse acquired a majority stake in its China securities JV. The bank now reportedly eyes full ownership of the JV.
Besides, this January it was reported that Goldman Sachs is in talks with ICBC’s wealth management arm to launch a majority-owned JV in China.
Withdrawal from private banking in Brazil
Meanwhile, JPMorgan recently inked an agreement to potentially transfer its private banking clients to Brazil’s Banco Bradesco.
JPMorgan’s Brazilian private banking arm manages around BRL20bn ($3.71bn), Reuters reported citing a source.
