JP Morgan secured its place in a Chinese securities business

By: Miguel A. Rodriguez

17:16, 02 November 2020

JP Morgan sets records for itself on the Chinese financial market

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.


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.