JP Morgan approved to distribute local securities investment funds in China
22 October 2013
Category: News, China, Global
By Asia Asset Management
JP Morgan Asset Management (JPMAM) announced on October 21 that JPMorgan Chase Bank (China) Company Limited (JPM China), the firm’s locally incorporated bank in China has received approval from the China Securities Regulatory Commission (CSRC) to distribute local securities investment funds to investors in China. As one of the first foreign bank subsidiaries incorporated in Beijing to have received the fund distribution license, JPM China is set to offer a range of funds including some managed by China International Fund Management (CIFM), a joint venture of JPMorgan Asset Management (UK) and Shanghai International Trust.
Zili Shao, chairman and CEO of JP Morgan China said: “JP Morgan commenced operations in China in 1921 and our franchise continues to grow. In 2007, JP Morgan was the first foreign bank to establish an LIB (locally incorporated bank) in Beijing and by obtaining a fund distribution license; we can now integrate best-in-class asset management advisory services for our institutional clients. In addition to asset management, the JP Morgan China franchise also covers investment banking, corporate banking, treasury services, foreign exchange, and risk management – [comprising] the broadest range of wholesale services from a foreign bank.”
Commenting on the approval of the license, Nick Huang, head of JP Morgan’s Global Corporate Bank for Greater China, said: “When it comes to investments, our institutional and corporate clients, local or international, are seeking to establish more robust investment policies and use a wider range of instruments, with a primary focus on fixed income. The funds distribution license will, over time, allow us to offer our clients the widest range of investment options from the rapidly growing asset management industry, combined with traditional bank products.”
JP Morgan Global Liquidity China (JPMGL China), the new fund distribution arm of JPM China, unites nearly a decade of investment experience from the partnership between JPMAM and CIFM with the global resources of the world’s largest liquidity manager to provide investment advisory and structuring services, market insights and best execution of RMB investments for corporate and institutional clients in China.
Travis Spence, managing director and head of global liquidity, Asia Pacific of JPMAM, said: “Institutional investors often focus on surplus cash first and through JPM China we can now directly offer our clients in China, the most innovative RMB investment solutions. Some products, like the CIFM RMB MMF, already exist in the market, but other options which cater to the requirements of institutional clients, are still quite limited. As markets develop further, we will work closely with the industry to develop new asset management solutions that are relevant to our clients. From structuring investment policies to implementing them, clients will benefit from our investment insights and local knowledge to guide them through the rapidly changing local fixed income markets in China.”