J.P. Morgan will increase holdings in its China securities joint venture and placed it has the foreign bank closest to obtaining full ownership of a mainland firm.
J.P. Morgan has been qualified as the buyer of a 20 percent stake put up for sale by Shanghai Waigaoqiao FTZ, according to a «Bloomberg» report citing a statement, after other existing shareholders gave up rights to increase their holdings.
Upon acquisition of the shares, it would make raise the American bank’s ownership in the securities joint venture to 71 percent, up from the current 51 percent. The remaining shareholders have agreed not to transfer or dispose of their holdings without J.P. Morgan’s approval.
J.P. Morgan continues to grow its investments in mainland China amidst a historic opening of its financial sector to foreign participants. The bank also has an asset management joint venture where it has a 51 percent ownership and will reportedly need to pay at least $1 billion to buy out the remaining stake.
