J.P. Morgan is seeking full ownership of its Chinese mutual fund ventures, a stake that is now reportedly priced at around $1 billion.
J.P. Morgan currently owns 51 percent of joint venture China International Fund Management and the remaining 49 percent held by Shanghai International Trust Co. is being priced at 7 billion yuan ($1.01 billion), according to a statement from Shanghai United Assets and Equity Exchange which auctions Chinese state-owned equities.
At $1 billion, the deal’s valuation is priced at 50 times earnings.
J.P. Morgan is rapidly making multi-pronged inroads into China via the historic opening of the mainland’s financial services sector. In addition to reaching agreement to take its remaining asset management joint venture stake, the American bank was also approved by regulators to establish a majority-owned securities business last December and a fully-owned futures business in June.
