The week debuted with an international deal for JP Morgan. According to an exchange filing published today, the American bank paid $26.6 million to secure the majority ownership in a Chinese firm.
JP Morgan paid for a 20% stake in Shanghai Waigaoqiao FTZ, as the information from Shanghai United Assets and Equity Exchange showed. Following the transaction, JP now owns 71% in the Chinese securities venture, getting close to full ownership of a firm that operates in a $50 trillion financial market.
The completion of the deal first announced in September makes JP Morgan the first foreign bank with the largest ownership stake in a securities joint venture in mainland China. The deal comes in a context in which the tensions between the US and China are escalating globally.
Moreover, JP Morgan announced earlier this year that it is looking to hire 12 equity research analysts, breaking the record for its major mainland hiring push.
JP Morgan stock price gained 1.18% in pre-market trading after the news.
Sources: Bloomberg.com, finance.yahoo.com