JP Morgan outlines China ambitions with new ventures

Mark Leung appointed as chief executive of JP Morgan’s China business including new securities venture.

JP Morgan is planning to increase its stake in its Chinese fund management joint venture to a majority level, along with an application to the country’s securities regulator separately to establish a new securities business. 

The move follows the announcement from Chinese regulators in April that foreign banks can now increase their holdings in securities companies in the country to 51%.

 JP Morgan previously sold off its ownership of a similar venture in 2016, but maintained its commitment to the region, saying it would re-enter at some point.

JP Morgan would hold a 51% stake in the new securities venture, eventually rising to 100%, in accordance with the newly-implemented rules allowing foreign businesses to own a majority-stake of securities, fund management, futures and insurance joint ventures. The move is subject to approval from the China Securities Regulatory Commission.

 “Our investment in China is a commitment to bring the full force of JPMorgan Chase and our resources to the country,” Jamie Dimon, chief executive of JP Morgan, said in a statement.

 “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 US and global commerce, and an encouraging sign for the world’s two largest economies.” 

The bank has also announced the appointment of Mark Leung as its chief executive of its Chinese business. A 21-year veteran at the bank having held roles in Hong Kong, Singapore and Japan, Leung was most recently global equities and prime services at JP Morgan.

 On the domestic front, JP Morgan has created a new management team to oversee the bank’s expansion of its algorithmic trading service. According to American news channel CNBC which first reported the moves, Chris Berthie has been appointed head of global cash execution, while Dennis Fitzgerald will take the position of head of global cash risk.