JP Morgan Asset Management (JPMAM) is the latest global firm to expand its presence in China’s onshore funds market following a green light from the local regulator.
The China Securities Regulatory Commission (CSRC) has granted JPMAM the approval to fully acquire China International Fund Management (CIFM), the Shanghai-based joint venture it had been running in partnership with Shanghai International Trust.
Set up in 2004, JPMAM had a 49% share of the business, which has US$23.9 billion in assets as of September 30 last year.
Once the acquisition is completed, CVIFM will operate under the JPMAM China name, and all employees will relocate to JP Morgan’s Shanghai office.
The current CEO of CIFM, Eddy Wong, will become CEO of JPMAM China, reporting to Dan Watkins, Asia-Pacific CEO of JPMAM.
Ever since China allowed overseas fund managers to operate wholly-owned businesses in mainland China as of 2020, large global firms have sought to establish their own China-based businesses or take full control of their JVs.
JPMAM follows in the footsteps of a number of overseas asset managers that have either been granted approval to set up their own onshore and wholly-owned Chinese mutual fund firms (Schroders and Neuberger Berman) or take full ownership of their JVs (Manulife Investment Management).
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