JP Morgan acquires further 20% from Waigaoqiao
The bank know owns around 71% of its Chinese Joint Venture.
JPMorgan Chase (NYSE: JPM) is moving closer to being the first foreign bank to take full control of a Chinese financial firm by increasing its stake in its Chinese securities JV to 71%. The bank acquired a 20% stake in the joint venture from Shanghai Waigaoqiao FTZ for 177.7 million yuan ($ 26.6 million), Bloomberg reports, citing a disclosure on the Shanghai United Assets and Equity Exchange.
For years, China's regulators have only allowed global banks to hold minority stakes in Chinese financial firms. That year it gave European and Wall Street banks permission to fully own such firms in the world's most populous country. Banks like JPM, Goldman Sachs, and the UBS group are adding staff and office space in the country with plans to expand a number of financial businesses, including futures, brokerage and wealth management.
Last month, Goldman President John Waldron announced that his firm would seek full ownership of its Chinese securities JV as more guidelines are released.