- JPMorgan Chase & Co (NYSE:JPM) lost its position as the most senior underwriter for Kingsoft Cloud Holdings Ltd's (NASDAQ:KC) Hong Kong stock offering, Bloomberg reports.
- The size of the offering in Hong Kong is relatively small, amounting to ~$100 million.
- The change came after one of JPMorgan's analysts cut the share-price target for the Chinese technology company by half.
- Also Read: JPMorgan Downgrades Alibaba and Other China Tech Stocks Following Selloff; Calls It "Uninvestable" For Next 6-12 Months
- JPMorgan bankers have explained to Kingsoft Cloud that general market conditions rather than fundamentals triggered the downgrade.
- JPMorgan is still a sponsor of the offering but ranks behind UBS Group AG (NYSE:UBS) and China International Capital Corp.
- The demotion could cut fees for JPMorgan.
- JPMorgan was among a slew of global banks seeking to expand in China when the nation's stock market plunged on concerns over economic slowdown, strict Covid Zero policies, and a government crackdown on tech companies.
- Price Action: JPM shares closed higher by 2.09% at $131.15 on Tuesday.
