JPMorgan to launch joint venture in China

11 June 2010

JPMorgan has unveiled details of a joint venture with First Capital Securities which will see the bank enter the securities market within Asia.

According to the financial institution, it will be able to underwrite and sponsor transactions within the securities business following approval from regulators.

The two sides are thought to have signed an agreement in March and have since been finalising details of the arrangement.

Under the terms of the deal JPMorgan is expected to hold a stake worth 33 per cent in the new venture.

The Shenzhen-based First Capital will hold the remaining 67 per cent share in the business.

Zili Shao, chief executive and chairman of JPMorgan China, told Dow Jones: “This is an integral part of our efforts in building a universal banking model in China.”

"First Capital, we felt, is a solid company, with a strong track record and a professional management team. Our aim is to create a comprehensive financial services platform for our clients in China."

JPMorgan recently announced the appointment of Thomas DuCharme as the chief executive officer of its Treasury and Securities
Services unit business in the Asia Pacific region.

By Jim Ottewill

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