JPMorgan Unit Steps Closer to Taking Over Its Chinese Mutual Fund Venture
What’s new: JPMorgan Chase & Co.’s asset management arm said Friday it has reached an agreement with its partner to take full ownership of a Chinese mutual fund joint venture.
JPMorgan Asset Management plans to buy Shanghai International Trust Co. Ltd.’s 49% stake in China International Fund Management Co. Ltd., the joint venture they formed in 2004. The U.S. company said it will seek approval for acquisition from the China Securities Regulatory Commission (CSRC).
What’s next: JPMorgan Chase was among the first foreign companies to seek full control over their mutual fund operations in China. On Wednesday, China abandoned its foreign shareholding cap for securities and fund-management firms. The measure was part of the phase one trade deal with the U.S, but it also dovetailed with China’s previous pledges to open up the financial sector.
On Wednesday, American investment giants BlackRock Inc. and Neuberger Berman Group LLC applied to the CSRC to set up wholly-owned mutual fund businesses in China.
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