JPMorgan Chase takes steps to advance China capabilities
HONG KONG AND BEIJING, May 14, 2018 – JPMorgan Chase today announced plans to further grow its onshore business capabilities in China and has appointed Mark Leung as the Chief Executive Officer of the country.
The Corporate & Investment Bank (CIB) has submitted an application to the China Securities Regulatory Commission (CSRC) seeking to establish a new, fully-integrated securities company in which it would hold a 51% stake, increasing to 100% as allowed by regulations over the next few years. The bank’s Asset & Wealth Management business is also pursuing its desire and intent to increase its current joint venture stake in China International Fund Management Co Ltd to a majority interest, subject to agreement with its joint venture partner and the relevant authorities.
“Our investment in China is a commitment to bring the full force of JPMorgan Chase and our resources to the country,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “We will hire people, lend to businesses, support the development of markets and strengthen communities through philanthropic initiatives. These developments are important for China, the U.S. and global commerce, and an encouraging sign for the world’s two largest economies.”
As the newly appointed CEO of China, Leung will be responsible for managing onshore and offshore activities in the country, helping to bring J.P. Morgan’s global network and resources to the country. He has been with J.P. Morgan for 21 years in a career that has taken him to Hong Kong, Singapore and Japan. Leung started his career in Rates Derivatives trading and has held trading roles in Emerging Markets, Credit Hybrids and Equity Derivatives. Most recently, he served as the co-head of Global Equities & Prime Services with Jason Sippel, who will become the sole head of that business.
David Li, J.P. Morgan’s Senior Country Officer for China, will also become a Vice Chairman of Global Banking. His expertise and experience will be extremely valuable as he dedicates more of his time advising key clients in the region. “Having Mark as the CEO of China brings the best of J.P. Morgan to this market,” said Li. “I look forward to working closely with Mark as J.P. Morgan China enters into the next phase of investments.”
“China represents one of the largest opportunities in the world for many of our clients and for JPMorgan Chase,” said Daniel Pinto, Co-President & Co-Chief Operating Officer of JPMorgan Chase and Chief Executive Officer of the CIB. “It is a critical component of our growth plans, both globally and in Asia Pacific. Our scale and global capabilities give us a unique ability to help Chinese companies grow internationally and also bring foreign investment and capital to China.”
The opportunity to have a majority-controlled and integrated securities company in China will allow J.P. Morgan’s CIB, a top underwriter of both debt and equity as well as a leader in cross-border M&A, to accelerate its dialogue with onshore Chinese clients as they expand and grow their businesses. The bank is also looking to double its research coverage of China-listed companies across all sectors, helping to educate global investors about exciting local opportunities. Additionally, J.P. Morgan’s Markets franchise, the largest in the world, will continue to invest in systems and platforms in an effort to provide better access and liquidity to China’s maturing capital markets.
J.P. Morgan’s Treasury Services business, which processes more than $5 trillion in global payments every day, provides its offerings to Chinese companies, as does the bank’s growing Custody & Fund Services business, which holds more than $23 trillion in assets under management for clients around the world.
The bank is also well-positioned to provide China’s institutions and individuals with world-class private banking and asset management services as the country’s economy and wealth continue to grow.
“Our ongoing investments in China reflect our long-term commitment to one of the largest, fastest-growing and most exciting markets in the world,” said Mary Erdoes, Chief Executive Officer, Asset & Wealth Management.
As a result of these initiatives, J.P. Morgan intends to significantly increase its hiring of talented graduates from local universities and develop their international skills.
“J.P. Morgan has a long history in China – fast approaching 100 years – and we are very focused on making sure we are well positioned for many more successful decades to come,” said Nicolas Aguzin, CEO and Chairman of J.P. Morgan, Asia Pacific. “Over the past four years, under the leadership of David Li, we have strengthened our management team onshore, deepened our client relationships, and paved the way for future opportunities. We are looking forward to entering our next exciting phase of growth with greater capabilities.”
J.P. Morgan was recently appointed by the People’s Bank of China as an RMB clearing house in the U.S., the first non-Chinese bank to be designated. The firm also recently announced the signing of a Memorandum of Understanding with Industrial and Commercial Bank of China Limited, under which both banks will expand cooperation and leverage their international and domestic strength to better support Chinese companies going global and multinational companies coming into China.
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About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
J.P. Morgan in China
J.P. Morgan has been doing business in China since 1921. J.P. Morgan’s services include corporate and investment banking, commercial banking, treasury services, markets, investor services and asset management. Today, the firm serves Chinese and international corporations, financial institutions and government agencies through our network in Beijing, Shanghai, Tianjin, Guangzhou, Chengdu, Harbin, Suzhou and Shenzhen.