What’s new: JPMorgan Asset Management (Asia Pacific) Ltd. has plans to invest about 2.7 billion yuan ($409.7 million) in China Merchants Bank Co. Ltd.’s (600036.SH) wholly owned wealth management subsidiary, according to an exchange filing (link in Chinese) the bank published Friday.
After the investment, JPMorgan Asset Management will hold a 10% stake in CMB Wealth Management Co. Ltd., while the Shanghai- and Hong Kong-listed bank will retain 90%. The deal is subject to approval by the China Banking and Insurance Regulatory Commission, the filing said.
The context: The banking regulator has said (link in Chinese) that it welcomes foreign investment in domestic banks’ wealth management units.
So far, regulators have approved the setup of three foreign-controlled wealth management joint ventures, with investment from Schroders PLC, Amundi Asset Management, Temasek Holdings Ptd. Ltd. and BlackRock Inc.
Related: China Greenlights Third Foreign-Controlled Wealth Management Venture
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)
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