J.P. Morgan In Talks on Chinese Venture -- WSJ
October 20 2016 - 03:02AM
Dow Jones News
By Julie Steinberg
HONG KONG -- J.P. Morgan Chase & Co. is in discussions to
sell its stake in its Chinese onshore investment-banking joint
venture, according to a filing Thursday.
J.P. Morgan owns 33.3% of the investment-banking joint venture
it established in 2011 with First Capital Securities Co. First
Capital Securities disclosed in a filing to the Shenzhen Stock
Exchange that it and J.P. Morgan are in talks to transfer the 33%
stake.
It is unclear what is driving J.P. Morgan's discussions to sell
its ownership. Many Wall Street banks have struggled to crack the
onshore China investment-banking market. Aggressive domestic
rivals, minority ownership and limits to the scope of their
operations have hampered many of the joint ventures.
Several banks are considering reshaping their operations on the
mainland, according to bankers and lawyers familiar with the
discussions.
No agreement has been reached on J.P. Morgan's potential stake
sale in the China investment-banking joint venture, according to
the filing.
A spokeswoman for J.P. Morgan confirmed the contents of the
filing but declined to give a reason for the potential change.
"China is a key market for the firm globally and for many of our
clients outside China," the spokeswoman wrote in an email. "J.P.
Morgan believes in the long term prospects of China and remains
fully committed to our China franchise."
--Yifan Xie contributed to this article.
(END) Dow Jones Newswires
October 20, 2016 02:47 ET (06:47 GMT)
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