J.P. Morgan China's focus will be on serving large corporations and financial institutions in the country that have international needs, a senior company official says. [Photo / China Daily]

Focus on serving large companies', financial institutions' global needs

SHANGHAI - JPMorgan Chase & Co said it aims to triple its revenue in China over the next five years by targeting large-scale Chinese and international corporations and financial institutions in China.

Joseph Regan, Vice-Chairman of J.P. Morgan China, told China Daily on Wednesday that the bank does not compete in the retail banking business, where domestic banks are traditionally strong.

J.P. Morgan China's focuses will be on serving large corporations and financial institutions in China that have international needs.

Regan said the bank has specifically launched a corporate banking strategy in China to provide one-stop financial services to large enterprises that want to expand internationally.

The services covered include investment banking, corporate banking, risk management, commodities, cash management, trade finance, loans, foreign exchange and derivatives.

"Our senior leadership is fully supportive of China ... we will continue to expand," Regan added.

More will be invested in the bank's wholly-owned physical commodity trading subsidiary in China, in a move to satisfy Chinese companies' growing needs in commodity trading.

The bank, which was locally incorporated in 2007, will also add branches to serve its corporate customers. Currently, it has six branches, which are in Beijing, Shanghai, Tianjin, Chengdu, Guangzhou and Harbin.

"We have a desire to open more branches. I hesitate to say how many, but it certainly will be a multiple of what we have now," Regan said.

To further promote its brand in China, J.P. Morgan China will hold the Corporate Challenge race for the first time in China this year. The event will take place in Shanghai.

In its 35 years of existence, the Corporate Challenge has expanded from a few hundred participants in New York to approximately 250,000 runners in 13 cities globally.

The races, which have competitors from corporations as well as divisions of the bank, provide an ideal team-building and networking opportunity for participants and philanthropic benefits for the host city.

"Through the event we will promote our brand image ... and strengthen our relations with our clients and potential clients, laying the foundation for the development of our business," said Barbara Paddock, senior vice-president of JPMorgan Chase.

Regan said: "It is symbolic for us to host this event in Shanghai, which reflects our commitment to establish ourselves as an outstanding corporate citizen in this city by promoting the city's versatile culture and its competitiveness as an international and multifaceted financial hub."

J.P. Morgan China saw its business take a leap last month with the launch of its securities joint venture with First Capital Securities Co Ltd, a deal that allows it to tap into the more lucrative domestic securities market.

Under the joint venture, J.P. Morgan First Capital Securities Co Ltd, the bank is able to underwrite initial public offerings (IPOs) in the A-share market.

It will also be able to underwrite IPOs in the upcoming international board in the Shanghai Stock Exchange, which will allow foreign companies to issue yuan-denominated shares in China for the first time.

"We have seen a lot of interest from clients outside China about the development of the board. When that happens, it will be a big opportunity" for the bank, said Regan.