J.P. Morgan increased its stake in its Chinese mutual fund joint venture, marking yet another milestone for foreign participation in the mainland’s financial sector.
The American bank upped its stake in China International Fund Management (CIFM) to 100 percent, pending approval from the China Securities Regulatory Commission.
This follows recent announcements by other rival asset management giants, such as Blackrock and Neuberger Berman, to enter the Chinese market as wholly-owned mutual fund firms.
CIFM was founded in 2004 in Shanghai with more than 150 billion yuan ($21 billion) in assets under management as of 2019-end.
China Opportunity
J.P. Morgan continues to increase its exposure to China amidst a historic opening of its financial services industry. Its full takeover of the asset management joint venture follows increased ownership from 49 percent to 51 percent in August last year. Its deepening inroads into the Chinese market also extend into securities, where the bank was approved to commence a majority-owned business in December 2019.
«We will continue to invest in and fully support our business in the country, which has become a critical market for many of our domestic and global clients,» said Jamie Dimon, chairman and CEO of J.P. Morgan Chase.
