After a decade with the bank, J.P. Morgan's vice chairman of Asia Pacific, has left the bank to establish a new investment vehicle.
Looking to capitalise on an expected expansion of China's non-performing loans, Zili Shao who was J.P. Morgan's vice chairman of Asia Pacific, has left the bank to start a new distressed debt investment firm.
Shao, who spent ten years at J.P. Morgan most recently as chairman and CEO of China, is teaming up with state-owned partners to start the new fund, named Shanghai Jinpu Lingyue Investment Management, according to Chinese media reports citing insiders.
Non Performing Loans at Record Levels
Media firm «China Money Network» reports that the new venture aims to raise several billion renminbi for its first special opportunities fund, with State-owned conglomerate Sinochem Group and Shanghai International Group, as well as A-share listed First Capital Securities, as the fund's cornerstone investors.
The fund will invest in non-performing loans, special situations, buyout and turn-around opportunities, as the country's banks and companies are expected to encounter greater financial challenges after an unprecedented credit boom after the global financial crisis.
Chinese Problems
prior to joining J.P. Morgan, Shao was at law firm Linklaters for 11 years as a managing partner. Before that, he was a solicitor at Mallesons Stephen Jaques and an attorney at BHP Billiton. He started his career in Beijing at CITIC Group as an attorney.
In 2014, he stepped down as J.P. Morgan's head of China to take the role of vice chairman of Asia Pacific after the bank was caught up in a scandal, in which it was investigated on how it hired the children of Chinese leaders in order to get high profile IPO mandates.
