Upon completion of the acquisition, CIFM will be operated by J.P. Morgan Asset Management’s Chinese unit (JPMAM China), integrating it into the company’s global operating model
JPMAM gets regulatory nod to complete acquisition of CIFM. (Credit: Rock Staar on Unsplash)
J.P. Morgan Asset Management (JPMAM) has received China’s Securities Regulatory Commission (CSRC) regulatory approval to complete its acquisition of China International Fund Management (CIFM).
Upon completion of the acquisition, CIFM will be operated by JPMAM’s Chinese unit (JPMAM China), integrating it into the company’s global operating model.
JPMAM’s Asset Management Wholly Foreign-Owned Enterprise (AM WFOE) will be integrated into JPMAM China, consolidating its onshore operations.
CIFM employees will be moved to join J.P. Morgan Asset Management at Shanghai Tower, in the Lujiazui Financial Zone in Pudong District, the centre of Shanghai’s financial industry.
CIFM chief executive officer Eddy Wong will be appointed as JP Morgan Asset Management China chief executive officer, reporting to its Asia Pacific chief executive officer Dan Watkins.
Dan Watkins said: “We believe integrating the strengths of CIFM’s local operating expertise with the resources and global scale of J.P. Morgan creates powerful momentum.
“Our strategic goal is to significantly grow JPMAM China to become the leading foreign asset manager in China and contribute to JPMAM becoming the leading manager of China assets to global investors.”
JP Morgan Asset and Wealth Management chief executive officer Mary Callahan Erdoes said: “Receiving regulatory approval to acquire full ownership of a Chinese fund manager is an incredibly exciting milestone that reflects our long-term mindset and the breadth of our commitment to China.”
JPMAM is a global investment management company, with assets under management worth over $2.45 trillion, as of 31 December 2022.
The company offers investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity to institutions, investors, and high-net-worth individuals.
JPMAM co-founded the CIFM in 2004 and was one of the first foreign managers to establish an Asset Management WFOE in 2016, in the Shanghai Free-Trade Zone.
The company partnered with China Merchants Bank in 2019, to serve as a preferred product provider to its asset management subsidiary, CMB Wealth Management.
In March 2021, JPMAM announced a strategic investment of $410m in CMB’s asset management subsidiary, CMB Wealth Management (CMBWM).
JP Morgan Asset Management China chief executive officer Eddy Wong said: “We are committed to providing both Chinese and international clients with a comprehensive suite of investment solutions, underpinned by outstanding investment performance, industry-leading investment products, and excellent client service.
“We will also pursue investor education initiatives leveraging our market insights, to help investors make well-informed decisions for their long-term financial futures.”