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J.P. Morgan China Receives Approval to Distribute Local Mutual Funds to Investors in China

Published 

Hong Kong, 21 October 2013:  J.P. Morgan Asset Management (JPMAM) today announced that JPMorgan Chase Bank (China) Company Limited (JPM China), the firm’s locally incorporated bank in China has received approval from the China Securities Regulatory Commission (CSRC) to distribute local securities investment funds to investors in China.  As one of the first foreign bank subsidiaries incorporated in Beijing to have received the fund distribution license, JPM China is set to offer a range of funds including some managed by China International Fund Management Co., Ltd. (CIFM[1]), a joint venture of JPMorgan Asset Management (UK) Limited and Shanghai International Trust Co., Ltd.  

Zili Shao, Chairman and CEO of JPMorgan China said, “JPMorgan commenced operations in China in 1921 and our franchise continues to grow. In 2007 JPMorgan was the first foreign bank to establish an LIB in Beijing and by obtaining a fund distribution license, we can now integrate best-in-class asset management advisory services for our institutional clients. In addition to asset management, JPMorgan China franchise also covers investment banking, corporate banking, treasury services, foreign exchange, and risk management – the broadest range of wholesale services from a foreign bank.”

Commenting on the approval of the license, Nick Huang, Head of JPMorgan’s Global Corporate Bank for Greater China said, “When it comes to investments, our institutional and corporate clients, local or international, are seeking to establish more robust investment policies and use a wider range of instruments, with a primary focus on fixed income.  The funds distribution license will, over time, allow us to offer our clients the widest range of investment options from the rapidly growing asset management industry, combined with traditional bank products.”

J.P. Morgan Global Liquidity, the short-term fixed income investment arm of JPMAM, has long been at the forefront of investment innovation in China, working together with CIFM. In 2012, CIFM launched what is believed to be one of the first short-term fixed income RMB separate accounts for a single institutional client in China.[2]

J.P. Morgan Global Liquidity China (JPMGL China)[3], the new fund distribution arm of JPM China, unites nearly a decade of investment experience from the partnership between JPMAM and CIFM with the global resources of the world’s largest liquidity manager to provide investment advisory and structuring services, market insights and best execution of RMB investments for corporate and institutional clients in China.

Travis Spence, Managing Director and Head of Global Liquidity, Asia Pacific of JPMAM said, “Institutional investors often focus on surplus cash first and through JPM China we can now directly offer our clients in China, the most innovative RMB investment solutions. Some products, like the CIFM RMB MMF, already exist in the market, but other options which cater to the requirements of institutional clients, are still quite limited. As markets develop further, we will work closely with the industry to develop new asset management solutions that are relevant to our clients.  From structuring investment policies to implementing them, clients will benefit from our investment insights and local knowledge to guide them through the rapidly changing local fixed income markets in China.”

JPMGL China aims to provide clients with exclusive access to the J.P. Morgan Global Cash Portal, a long-established online trading platform that will allow clients to manage their RMB investments with ease. With stringent security measures, enhanced reporting and consolidated balances across multiple accounts, clients can manage JPMorgan and RMB investment accounts in one place with global visibility of RMB investments in China and secure online trading access. “Execution is equally important for clients, and the Global Cash Portal combined with our client service team inside China and around the world will be a significant step forward in information access and security to execute transactions for RMB investments in China, from anywhere at anytime” said Spence.

“We believe institutional and corporate clients in China are growing in size and sophistication, they are demanding more robust investment solutions and service, and we are excited about what this means for the fixed income markets and our clients in China” said John Donohue, Head of J.P. Morgan Global Liquidity. “The timing is perfect to bring our local knowledge and global expertise together to deliver results driven solutions in areas of risk and liquidity management for institutional investors, in what has become one of our most important markets globally”.

Investing directly with JPMGL China means partnering with one of the world’s leading liquidity and short-term fixed income investment managers, JPMAM, which is the brand for the asset management business of one of the most respected names in institutional financial services, JPMorgan Chase & Co and its affiliates worldwide. 

 

[1] Business segregation is implemented between CIFM and JPMorgan Asset Management (UK) Ltd.  As a shareholder of CIFM, JPMorgan Asset Management (UK) Ltd. does not directly participate in investment and operation of CIFM’s fund property.

[2]The CIFM separate account is managed and offered by CIFM. The information contained herein is for informational purposes only. Separate accounts may be offered by CIFM through JPM China only in China to: (i) institutions legally organised in China and permitted by Chinese law and regulation to invest in open-end investment funds; and (ii) entities with “Qualified Foreign Institutional Investor” status in China.

[3]  J.P. Morgan Global Liquidity China is the brand for the fund distribution business of JPMorgan Chase Bank (China) Company Limited. 

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