JP Morgan Asset Management (JPMAM) has received a business license approval from Chinese regulators, making it the first foreign asset management company to receive such backing.
The nod from regulators represents another advancement in the opening up of China’s markets.
The development builds on a 12-year joint venture with the Shanghai International Trust in developing China International Fund Management (CIFM).
JPMAM will now establish an Asset Management Wholly Foreign-Owned Enterprise (AMWFOE).
Under the new license JPMAM has set up its onshore entity in Shanghai’s free trade zone.
“We appreciate the guidance and support from governments and regulators, especially the Shanghai Municipal Office of Financial Service, the China (Shanghai) Pilot Free Trade Zone Administrative Committee and the Pudong New Area Government throughout the application process,” said Michael Falcon, CEO of Asia Pacific for JPMAM.
“Establishing the AM WFOE will further strengthen our on-the-ground presence in Mainland China, providing a foundation for the long-term development of our asset management business and our ability to serve investors. “
This moves marks the latest development in a sign of China liberalising its financial markets
Speaking to Global Custodian last month, HSBC’s head of China sales and business development, EMEA Florence Lee stated that the removal of stringent regulations including the lock-up and injection periods on the QFII quota reflects how China is opening up to international investors.
China gives JP Morgan Asset Management approval
JP Morgan Asset Management has become the first foreign asset management company to receive business license approval.