J.P. Morgan takes one step closer to full ownership of its securities business in mainland China, just days ahead of the U.S. elections.
J.P. Morgan will own 71 percent of Chinese securities joint venture – up from 51 percent – after buying an additional 20 percent from local partners, according to recent exchange filings.
The stake was put up for sale by state-owned Shanghai Waigaoqiao FTZ and J.P. Morgan won the stake after the remaining four shareholders gave up their right to make the purchase.
Records show that J.P. Morgan paid 177 million yuan ($26.5 million) for the 20 percent stake in a deal completed late last month.
Securities Expansion
J.P. Morgan continues to expand in China despite growing U.S.-China tensions, with reported plans to add a dozen equity analysts under the leadership of ex-UBS equity head David Xu, newly hired for a Shanghai-based role.
The increased stake will place J.P. Morgan ahead of competitors like Morgan Stanley, Goldman Sachs and UBS, which still own 51 percent of their own securities units but have intentions to move towards full ownership.
