JP Morgan Asset Management (JPMAM) has won approval from China’s securities regulator to establish a wholly-owned China fund business.
JPMAM said it had received the nod from the China Securities Regulatory Commission to complete its acquisition of China International Fund Management (CIFM) in which it previously held a 49% stake.
JPMAM did not disclose the price of the acquisition.
CIFM will be operating under the JPMAM brand in China and all CIFM employees will also eventually relocate to join JP Morgan at Shanghai Tower, located in the Lujiazui Financial Zone in Pudong District in Shanghai.
CIFM chief executive officer Eddy Wong will become chief executive officer of JPMAM China, reporting to Dan Watkins, Asia Pacific chief executive officer of JPMAM.
“Receiving regulatory approval to acquire full ownership of a Chinese fund manager is an incredibly exciting milestone that reflects our long-term mindset and the breadth of our commitment to China,” said Mary Callahan Erdoes, chief executive officer of JP Morgan Asset & Wealth Management.
“Having worked hand-in-hand with CIFM since co-founding it 18 years ago and having been a key part of the growth of that business to today overseeing client assets of approximately Rmb170bn ($23.9bn), we’re thrilled to now fully combine CIFM’s strengths with our international investment capabilities to serve both domestic China and global investors,” said George Gatch, chief executive officer of JPMAM.
