J.P. Morgan Asset Management (JPMAM) announced significant steps in advancing its long-standing commitment to expanding in China.
JPMAM has received regulatory approval from the China Securities Regulatory Commission (CSRC) to complete its acquisition of China International Fund Management Co., Ltd. (CIFM). CIFM will be operating under the JPMAM brand in China (JPMAM China), reflecting its integration into the firm’s global operating model.
JPMAM’s Asset Management Wholly Foreign-Owned Enterprise (AM WFOE) will be integrated into JPMAM China, reflecting the firm’s consolidated onshore operations. All CIFM employees will also eventually relocate to join J.P. Morgan at Shanghai Tower, an iconic building in the Lujiazui Financial Zone in Pudong District, the center of Shanghai’s financial industry. CIFM Chief Executive Officer Eddy Wong will become Chief Executive Officer, J.P. Morgan Asset Management China, reporting to Dan Watkins, Asia Pacific Chief Executive Officer, J.P. Morgan Asset Management.
“Receiving regulatory approval to acquire full ownership of a Chinese fund manager is an incredibly exciting milestone that reflects our long-term mind-set and the breadth of our commitment to China. Our scale and global capabilities will enable us to help Chinese investors strengthen their investment solutions and diversify internationally, as well as to bring foreign investment and capital to China,” said Mary Callahan Erdoes, Chief Executive Officer, J.P. 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 170 billion RMB (USD $23.9 billion)[1], 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, J.P. Morgan Asset Management.
“We believe integrating the strengths of CIFM’s local operating expertise with the resources and global scale of J.P. Morgan creates powerful momentum. Our strategic goal is to significantly grow JPMAM China to become the leading foreign asset manager in China and contribute to JPMAM becoming the leading manager of China assets to global investors,” said Dan Watkins, Asia Pacific Chief Executive Officer, J.P. Morgan Asset Management.
“This milestone is the culmination of years of dedicated collaboration and we would like to thank our joint venture partners for their incredible support. Shanghai Trust and its shareholder Shanghai Pudong Development Bank (SPDB) have made enormous contributions to CIFM since inception and we look forward to maintaining an extremely strong working relationship. As part of China’s long-term financial liberalization reforms, Chinese regulators and Shanghai Municipal Authorities have been instrumental in developing the framework for foreign entities to become full participants in China’s rapidly developing asset management industry,” said Paul Bateman, Chairman, J.P. Morgan Asset Management.
“We are delighted to formally become part of the J.P. Morgan family. As we build on CIFM’s well-established presence and onshore expertise, we are committed to providing both Chinese and international clients with a comprehensive suite of investment solutions, underpinned by outstanding investment performance, industry-leading investment products, and excellent client service. We will also pursue investor education initiatives leveraging our market insights, to help investors make well-informed decisions for their long-term financial futures,” said Eddy Wong, Chief Executive Officer, J.P. Morgan Asset Management China.