News

JPMorgan takes control of China asset management JV

Handshake_contractJP Morgan has confirmed that it has won an auction to purchase a 2% equity stake in China International Fund Management (CIFM). The transaction makes it the first overseas business to hold a majority stake in an onshore funds business. The process was conducted by the Shanghai United Assets and Equity Exchange. Prior to the auction, JP Morgan held 49% of the joint venture. “Having won this auction to purchase a 2% equity stake in CIFM, we are looking forward to the next steps to proceed with this acquisition, working closely with our joint venture partners,” said Dan Watkins, chief executive for Asia Pacific at JP Morgan Asset Management (JPMAM). “Once completed, the deal will be contingent on the approval of regulators in the US and China,” added Watkins. JPMAM has recently said that investors are increasingly facing little choice other than to look at China – whether it is through public or private markets. The firm also credits the opening of the A-share market as an opportunity for investors to achieve diversification whilst capturing exposure to a broad and liquid set of higher quality domestic (onshore) companies that were previously only available to locals and sophisticated institutions. Following its auction win, a JPMAM spokesperson told Funds Global Asia: “We strongly believe in the future prospects of China. We have a long-term strategic approach to our business in the country. We have strong ambitions to strengthen our position in this very important market in order to better serve our clients.” Before the auction, Shanghai International Trust owned 51% of CIFM. ©2019 funds global asia

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