JPMorgan Chase will pursue a controlling stake in its Chinese asset management joint venture China International Fund Management, the Financial Times reported on Monday. The move comes shortly after the financial giant re-entered China’s securities market with a majority-controlled company.
JPMorgan’s attempt to take control of its asset management JV is the latest bid by a foreign financial firm to take advantage of China’s new, more relaxed foreign ownership laws, introduced late April, allowing foreign investment companies to take a majority stake in joint ventures with domestic firms. UBS and Nomura have since applied for this permission.
In a statement on Monday former JPMorgan chief Jamie Dimon, who took the bank out of the Chinese market by exiting its joint venture with First Capital Securities in 2016, said: “Our investment in China is a commitment to bring the full force of JPMorgan Chase and our resources to the country.”
“We will hire people, lend to businesses, support the development of markets and strengthen communities through philanthropic initiatives.”