JPMorgan to sell joint Chinese stake
CEO Jamie Dimon’s decision signals some foreign banks are growing frustrated with the hurdles in China
Hong Kong — After six years as a minority partner in a Chinese investment-banking joint venture, JPMorgan Chase has had enough of playing second fiddle. The US bank is in talks to sell its stake in JPMorgan First Capital Securities as it seeks to free itself up to get more control in a potential new venture, according to a statement on Thursday and people familiar with the matter. Since UBS and Goldman Sachs established Chinese joint ventures more than a decade ago, foreign banks have struggled to challenge local players. One competitive disadvantage is that Chinese rules limit them to minority stakes, reducing their sway over key decisions. JPMorgan CEO Jamie Dimon’s decision signals that some banks are growing frustrated with the hurdles in China. Mark Schwartz, the Goldman Sachs veteran who oversaw efforts to secure full control of the firm’s local investment-banking venture, is stepping down as Asia-Pacific chairman, according to a memo this week. "Having a minority stake in a C...
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