Money

JP Morgan to finish preparatory work for Chinese securities JV in Q2

(Xinhua)
Updated: 2011-01-13 13:59

BEIJING - JP Morgan Chase & Co (JP Morgan) will finish preparatory work for its recently-authorized Chinese securities joint venture in the second quarter, Shao Zili, chairman of the company's greater-China area operations, said Thursday.

JP Morgan will hold a 33.3 percent stake in the joint venture. First Capital, a leading Chinese securities firm, will hold the remaining 66.7 percent.

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The joint venture will involve in the A-share and domestic bond issuance business, which JP Morgan has never tried in China before, Shao said.

The New York-based investment bank has previously focused on H-share and offshore businesses in China, Shao said.

The China Securities Regulatory Commission, China's securities regulator, approved the establishment of the joint venture last week.

Despite challenges from Chinese securities firms, Shao said he is optimistic about the joint venture's future.

"Competition may be fierce in the future, but the market is expanding," said Shao, noting that China's capital markets are booming. Shao said JP Morgan aims to provide an all-around financial service to Chinese clients with its universal banking system. JP Morgan has 500 employees in the Chinese mainland.