JPMorgan considers private bank in China

Pedro Gonçalves
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JPMorgan considers private bank in China

JPMorgan Chase is mulling over opening a private bank in China, as new regulations may give foreign companies a shot at competing with local firms, Bloomberg reports.

Under the new rules, foreign investors are allowed to take a controlling stake in joint-venture (JV) securities firms in China.

The decision is said to significantly boost competition in the country, where personal wealth increased to $24trn in 2018 as per estimates by the Boston Consulting Group.

JPMorgan is currently conducting a feasibility study on China's onshore wealth business, its Asia private banking CEO Kam Shing Kwang was quoted as saying by the report.

The move forms part of the lender's broader expansion strategy in the country.

Though currently at an early stage, the China venture would start "not in the distant future", Kwang noted.

The bank has also asked for permission to run a majority-owned securities joint venture in China, as the country's policy makers moved to treat foreign financial firms the same as local companies.

In September, JPMorgan CEO for China business Mark Leung unveiled plans to hire in China. The hiring will cover the areas of banking, asset management, custodian services and markets, Leung said. 

Meanwhile, CEO Jamie Dimon has pledged to bring the bank's full force in the country.