JPMorgan to Buy USD 410 Million Stake in Chinese Bank’s Wealth Business
JPMorgan Chase plans to take a 10% stake in the wealth subsidiary of China Merchants Bank.
China Merchants Bank said its wealth management unit is expected to receive investment of 2.7 billion yuan (USD 414.80 million) from JPMorgan Asset Management (Asia Pacific) Limited, according to report in Reuters.
JPMorgan will take a 10 percent stake in CMB Wealth Management as a strategic investor while the Shenzhen-based lender will retain a 90 percent stake, it said in a filing with the Shanghai stock exchange.
“The investment would deepen the cooperation between the bank and the strategic investor and is good for CMB Wealth Management to enhance its internal governance,” China Merchants Bank said in the filing.
Global financial firms are rushing to expand their footprint in China where the government fully opened up its giant financial sector to foreign companies last year. Schroders received permission last month to form a majority-owned wealth management venture with a unit of Bank of Communications (BOCOM), the country’s fifth biggest lender.