We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JPMorgan (JPM) Applies for Full Control of China Securities JV
Read MoreHide Full Article
Continuing with its efforts to expand operations in China, JPMorgan (JPM - Free Report) applies to obtain a 100% stake in its China securities joint venture (“JV”). Along with this, the U.S. banking giant is increasing staffing in the nation, per Bloomberg.
Mark Leung, JPMorgan’s chief executive officer for China said in a Bloomberg interview that the bank has entered commercial agreements with existing partners in its securities and asset management joint ventures. Also, the bank is increasing its staffing 16-17% a year.
Leung added, “Fingers crossed, our target is to get it done as soon as possible. We already have one of the most complete, probably the most complete foreign setup” in China.
Notably, in November 2020, JPMorgan already raised its stake in the China securities venture to 71%. It came after the company completed the transaction to buy a 20% stake in the JV from one of the local partners — Shanghai Waigaoqiao FTZ — for 177.7 million yuan ($26 million).
As China’s $53-trillion financial market is now open to foreign firms, following the removal of restrictions on ownership, the biggest U.S. bank (in terms of assets) like other global firms is rushing to capitalize on the opportunity.
In fact, JPMorgan has decided to get full ownership of all of its mainland China operations by the end of this year, which is part of its four-year investment plan in the country.
The Wall Street giant has already obtained full control of its futures JV in China, J.P.Morgan Futures Co., after receiving regulatory approval from the China Securities Regulatory Commission to increase the stake to 100% from 49%.
Like JPMorgan, Goldman Sachs (GS - Free Report) has also begun the process of receiving clearance from regulators for obtaining full control of its securities JV in China. The company is on a hiring spree in China and Hong Kong, and is mulling to recruit more than 400 people in the regions. The bank is said to be in the process of filling 320 positions, which includes 70 positions in its investment bank. It also intends on adding another 100 positions by the end of this year.
Goldman Sachs’ plan to boost its Hong Kong and China operations follows other lenders’ moves, who are hiring in the region too, in anticipation of a continued ‘homecoming’ of U.S.-listed China firms pursuing secondary listing in Hong Kong.
This March, Citigroup (C - Free Report) was in the news for plans of recruiting nearly 1,700 people in Hong Kong. Likewise, Credit Suisse Group aims to triple its headcount in China over the next three years by taking full control of its mainland securities JV and strengthening business in the nation.
Our Take
JPMorgan’s initiatives to expand branch network in new markets are expected to continue supporting profitability. Its inorganic expansion strategy along with a strong mortgage banking business is likely to aid growth.
So far this year, shares of JPMorgan have gained 30.6% compared with 35.5% growth recorded by the industry.
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
JPMorgan (JPM) Applies for Full Control of China Securities JV
Continuing with its efforts to expand operations in China, JPMorgan (JPM - Free Report) applies to obtain a 100% stake in its China securities joint venture (“JV”). Along with this, the U.S. banking giant is increasing staffing in the nation, per Bloomberg.
Mark Leung, JPMorgan’s chief executive officer for China said in a Bloomberg interview that the bank has entered commercial agreements with existing partners in its securities and asset management joint ventures. Also, the bank is increasing its staffing 16-17% a year.
Leung added, “Fingers crossed, our target is to get it done as soon as possible. We already have one of the most complete, probably the most complete foreign setup” in China.
Notably, in November 2020, JPMorgan already raised its stake in the China securities venture to 71%. It came after the company completed the transaction to buy a 20% stake in the JV from one of the local partners — Shanghai Waigaoqiao FTZ — for 177.7 million yuan ($26 million).
As China’s $53-trillion financial market is now open to foreign firms, following the removal of restrictions on ownership, the biggest U.S. bank (in terms of assets) like other global firms is rushing to capitalize on the opportunity.
In fact, JPMorgan has decided to get full ownership of all of its mainland China operations by the end of this year, which is part of its four-year investment plan in the country.
The Wall Street giant has already obtained full control of its futures JV in China, J.P.Morgan Futures Co., after receiving regulatory approval from the China Securities Regulatory Commission to increase the stake to 100% from 49%.
Like JPMorgan, Goldman Sachs (GS - Free Report) has also begun the process of receiving clearance from regulators for obtaining full control of its securities JV in China. The company is on a hiring spree in China and Hong Kong, and is mulling to recruit more than 400 people in the regions. The bank is said to be in the process of filling 320 positions, which includes 70 positions in its investment bank. It also intends on adding another 100 positions by the end of this year.
Goldman Sachs’ plan to boost its Hong Kong and China operations follows other lenders’ moves, who are hiring in the region too, in anticipation of a continued ‘homecoming’ of U.S.-listed China firms pursuing secondary listing in Hong Kong.
This March, Citigroup (C - Free Report) was in the news for plans of recruiting nearly 1,700 people in Hong Kong. Likewise, Credit Suisse Group aims to triple its headcount in China over the next three years by taking full control of its mainland securities JV and strengthening business in the nation.
Our Take
JPMorgan’s initiatives to expand branch network in new markets are expected to continue supporting profitability. Its inorganic expansion strategy along with a strong mortgage banking business is likely to aid growth.
So far this year, shares of JPMorgan have gained 30.6% compared with 35.5% growth recorded by the industry.
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>