JPMorgan to seek full control of China fund venture

FILE PHOTO: A view of the exterior of the JPMorgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files/File Photo

JPMorgan Chase & Co. is seeking 100% ownership of its fund management joint venture in China, according to people familiar with the matter, a move that follows efforts to take full control of another local unit as the country opens its financial market.

The New York-based bank’s asset management division is in talks with partner Shanghai International Trust Co. to acquire its 49% stake in China International Fund Management Co., which oversees 150 billion yuan ($22 billion) of assets, the people said, asking not to be identified as the discussions are private. The partners haven’t yet reached an agreement on a price and the plan is subject to change, according to the people.

JPMorgan Asset Management last year agreed to pay at least 241.3 million yuan to Shanghai Trust in boosting its stake by 2 percentage points to 51%. That transaction is yet to be approved by regulators.

Representatives at JPMorgan Asset Management, Shanghai International Trust and China International Fund declined to comment.

Global financial firms are rushing to capitalize on China’s opening of it $45 trillion financial market, with the likes of JPMorgan, Goldman Sachs Group Inc. and UBS Group AG adding staff and 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 licenses to start wholly-owned mutual fund management firms in April or buy out local funds. Goldman Sachs plans to apply for a license to run a fully owned asset management operation once the rules allow, a person familiar said. Nomura Holdings Inc’s Chief Executive Officer Koji Nagai said last month its expertise catering to rich Japanese should give it an edge in managing wealth in a fast-greying China.

China had 128 mutual fund management firms overseeing 14 trillion yuan of assets as of November, among which about a third are Sino-foreign joint ventures, according to the Asset Management Association of China.

JPMorgan Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its “full force” to China. The bank earlier last year became the first U.S. bank to receive Chinese approval to take majority ownership of a securities joint venture. It is also seeking full control of its futures unit in China, raising it from a current 49% stake, people familiar with the matter said last month.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.