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 00:45 ET (04:45 GMT)

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