Firms Push Ahead With Chinese Fund Management Business
JPMorgan Fleming Asset Management (UK) and Shanghai International Trust and Investment Corporation (SITICO) have announced a joint venture to establish a fund management business in China. The move is expected to expand the market position of JPMorgan Chase & Co. in China’s fast growing financial market. JPMorgan Fleming, the asset management arm of JPMorgan Chase, will initially invest a total of RMB 49.5 million (approximately US$6 million) for a 33 per cent stake in the joint venture, the current legal limit for foreign holdings in a mainland fund management company. It intends to raise this stake to 49 per cent when Chinese law permits. As a start, the joint venture will have a share capital of RMB 150 million (approximately US$18.2 million).