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JPMorgan wants to get back into China

America's biggest bank is taking another shot at China's huge financial markets.JPMorgan Chase is seeking appr...

Posted: May 11, 2018 11:41 AM
Updated: May 11, 2018 11:41 AM

America's biggest bank is taking another shot at China's huge financial markets.

JPMorgan Chase is seeking approval from the Chinese government to launch a new brokerage in the world's second biggest economy, just weeks after Beijing relaxed restrictions on foreign ownership of financial companies.

This will be the second attempt by the Wall Street giant to gain a serious foothold in China. In late 2016, it pulled out of a joint venture in which it had a 33% stake.

China's securities regulator said Thursday it had received an application from JPMorgan seeking to establish a joint venture in which the bank would hold a controlling 51% stake. It didn't say how long the approval process would take.

China pledged last November to allow foreign companies to own Chinese banks and investment firms for the first time. It followed through on part of that promise at the end of April, announcing new rules for foreign investment in securities firms and fund managers.

Related: China presents huge rewards for Wall Street -- with big risks

JPMorgan is the third international bank to seek approval to control a Chinese firm since the rule change, following similar submissions from Switzerland's UBS and Japan's Nomura.

A joint venture would allow JPMorgan to trade Chinese stocks, bonds and other assets on behalf of local clients.

China's capital markets are a multi-trillion dollar opportunity for foreign banks. But experts have warned that despite the change in ownership rules, international firms could still face challenges navigating Chinese regulations and competing with well established local players.

HSBC, which traces its roots to Hong Kong, has used its special position to build a major presence in China. Other international banks have long hoped to gain better access to the market to take advantage of its growing wealth.

Before the rule change, foreign banks were only allowed to hold a maximum stake of 49% in a Chinese joint venture -- a restriction that caused complaints from major US firms in the past.

"A lot of these [joint ventures] are hard to govern, badly run, not very successful and don't set the highest standards," JPMorgan CEO Jamie Dimon said in an interview with Bloomberg TV in China this week.

JPMorgan has a checkered history in China. It was fined $264 million by US regulators in 2016 for improperly hiring "unqualified" children of China's ruling elite to win lucrative business in the country.

Related: UBS tests China's promise to allow foreign-owned banks

Dimon said this week that the bank one day hopes to secure 100% ownership of its operations in the country. China has said that will be possible for securities ventures in three years' time.

"We're building here for a hundred years," Dimon said, referring to the Chinese market.

A JPMorgan spokeswoman in Hong Kong declined to comment further on the bank's plans for China. It currently operates a handful of branches in the country to provide finance for US companies doing business there.

-- Serenitie Wang contributed to this report

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 313166

Reported Deaths: 7228
CountyCasesDeaths
DeSoto21496257
Hinds20294414
Harrison17814309
Rankin13573278
Jackson13411246
Madison10066217
Lee9962173
Jones8364163
Forrest7649152
Lauderdale7181240
Lowndes6370145
Lamar621686
Lafayette6171118
Washington5323133
Bolivar4797132
Oktibbeha461498
Panola4561105
Pearl River4499145
Marshall4397103
Warren4380121
Pontotoc419572
Monroe4100133
Union409076
Neshoba4026176
Lincoln3950110
Hancock377786
Leflore3487125
Sunflower335790
Tate332484
Pike3301105
Scott315373
Alcorn311968
Yazoo310769
Itawamba299477
Copiah296465
Simpson294788
Coahoma294379
Tippah287768
Prentiss279560
Adams269582
Marion268880
Leake266273
Wayne262341
Grenada260386
Covington256381
George246848
Newton246061
Winston226881
Tishomingo225967
Jasper220848
Attala214173
Chickasaw207157
Holmes188673
Clay184754
Stone182033
Tallahatchie178140
Clarke177879
Calhoun170132
Yalobusha163337
Smith162234
Walthall133845
Greene130333
Lawrence128323
Montgomery126742
Noxubee126734
Perry125938
Amite122842
Carroll121728
Webster114532
Jefferson Davis106932
Tunica104826
Claiborne102230
Benton99125
Humphreys96133
Kemper95428
Franklin83623
Quitman80216
Choctaw76118
Wilkinson66930
Jefferson65428
Sharkey50317
Issaquena1686
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Alabama Coronavirus Cases

Cases: 530325

Reported Deaths: 10966
CountyCasesDeaths
Jefferson763971520
Mobile40908804
Madison34717503
Tuscaloosa25730452
Montgomery24314588
Shelby23401249
Baldwin21107307
Lee15856171
Calhoun14488314
Morgan14282279
Etowah13819353
Marshall12210223
Houston10557280
Elmore10044205
Limestone9954150
Cullman9649193
St. Clair9644242
Lauderdale9419241
DeKalb8825185
Talladega8214175
Walker7223277
Autauga6918108
Jackson6804112
Blount6651137
Colbert6292134
Coffee5506119
Dale4828111
Russell440638
Chilton4279112
Franklin425582
Covington4118118
Tallapoosa4019152
Escambia393276
Chambers3559123
Dallas3547151
Clarke350861
Marion3113100
Pike310577
Lawrence299898
Winston274072
Bibb260464
Marengo249264
Geneva249077
Pickens234160
Barbour230757
Hale222677
Butler215969
Fayette212062
Henry188744
Cherokee184445
Randolph179941
Monroe177340
Washington167039
Macon158750
Clay156156
Crenshaw152057
Cleburne148741
Lamar141934
Lowndes138653
Wilcox127030
Bullock123041
Conecuh110129
Perry107526
Coosa107128
Sumter104332
Greene92334
Choctaw60424
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