According to an exchange filing on Monday, JPMorgan will now own 71 per cent stake of its Chinese securities joint venture after completing the transaction of buying 20 per cent stake from one of its local partners.
The deal was first flagged in September, which will give the Wall Street bank an edge closer to the ownership of its securities business in China as geopolitical relations between the US and China remains fragile. It will also strengthen JPMorgan’s position as the foreign bank with the highest ownership stake in the mainland Chinese securities joint venture.
US largest bank finalised the purchase deal just before the Nov. 3 presidential election, on which the future relationship between the two powerful economies, China and US depends.
The stake of JPMorgan’s Chinese securities joint venture was put for sale by state-owned Shanghai Waigaoqiao FTZ, as per the filing on the Shanghai United Assets and Equity Exchange in September. JPMorgan was the only one that could raise its ownership in the venture with prior rights, the filing shows and the remaining four shareholders have given up their permission to purchase 20 per cent stake.