Benzinga | Jan 5, 2021 04:31AM EST

JPMorgan In Talks For Another Wealth Management Joint Venture In China: Report

JPMorgan Chase & Co (NYSE:JPM) is in plans to set up another wealth management joint venture in China, reports Bloomberg.

What Happened The talks between JPMorgan and the commercial banking entity China Merchants Bank ADR (OTC:CIHKY) are in the early stages and the U.S. bank may not have a controlling interest in the venture, people familiar with the matter told Bloomberg.

In November, JPMorgan bought a 20% stake from its local JV partner Shanghai Waigaoqiao FTZ, raising the American investment bank's control to 71%.

Why Does It Matter The $53 trillion Chinese financial industry is witnessing a flurry of interest from financial entities after the regulators opened up the nation's economy to foreign investors. The new Chinese regulations allow foreign entities to exercise 100% control in their mutual fund joint ventures.

In the first week of December, there were reports that Goldman Sachs Group Inc (NYSE:GS) will acquire 100% of Goldman Sachs Gao Hua Securities Co. (GSGH) -- its securities venture in China.

Price Action JPM stock closed at $125.87, 0.94% lower on Monday.

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