JP Morgan and China-based First Capital Securities have entered into an agreement to establish a securities joint venture to operate in the Chinese domestic market, subject to regulatory approval.
First Capital will have a 67% stake in the new entity with the remaining 33% owned by JP Morgan. JP Morgan and First Capital signed a memorandum of understanding in March this year.
According to JP Morgan, the joint venture will have the capability to engage in underwriting business in the Chinese domestic market.
First Capital Securities offers clients access to corporate finance, fixed income, M&A, securities brokerage and asset management. It has branches in 12 cities in China and is headquartered in Shenzhen.