J.P. Morgan in Talks to Sell Stake in China Investment-Banking Joint Venture
October 20 2016 - 12:41AM
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 on 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 joint-venture
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.
Write to Julie Steinberg at julie.steinberg@wsj.com
(END) Dow Jones Newswires
October 20, 2016 00:26 ET (04:26 GMT)
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