JPMORGAN Chase 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 and wealth management business is also pursuing its intent to increase its 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," says 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 US 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," says 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 US$5 trillion in global payments every day, provides its offerings to Chinese companies, as does the bank's growing custody and fund services business, which holds more than US$23 trillion in assets under management for clients around the world.
Photo: JPMorgan Chase