JPMorgan 'to form Chinese securities joint venture'

12 March 2010

JPMorgan is set to form a securities joint venture in China with First Capital Securities, it has been widely reported.

According to sources close to the deal, a memorandum of understanding has been signed by the two companies to set up the unit.

Such a move would represent a further investment in China for JPMorgan, which is already involved in joint ventures in the futures market and fund management sector in the country.

While this particular agreement is yet to be confirmed by the US bank, earlier this week JPMorgan's chief executive for China Fang Fang told Reuters that the company wants to set up a securities joint venture there as soon as possible.

Goldman Sachs and UBS have already moved into the market during recent years.

Earlier this week, a spokesman for Royal Bank of Scotland's operations in Hong Kong told Bloomberg that it is also seeking to set up a securities joint venture in China.

By Tony Aynsley

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