JP Morgan wins nod to raise China JV stake - paper
Fri Jul 8, 2005
SHANGHAI, July 9 (Reuters) - JP Morgan has received permission to boost its stake to 49 percent in its China asset management joint venture, under newly relaxed rules introduced this year, according to a media report on Saturday.
JP Morgan Fleming Asset Management (UK) Ltd. received the nod from China's securities regulator to raise its stake from a current 33 percent in the year-old venture, China International Fund Management Co., according to the China Securities Journal.
JP Morgan Fleming will buy the additional 16 percent from its venture partner, Shanghai International Trust & Investment Co., the paper reported.
The move will make JP Morgan the second foreign company to take advantage of investment laws that were relaxed this year allowing foreign partners to take up to 49 percent in their asset management joint ventures.
Earlier, UBS won approval to boost its stake in its venture, China Dragon Fund Management Co., also to the newly allowed 49 percent.
The JP Morgan Fleming joint venture has registered capital of 150 million yuan ($18.2 million), making it the largest of its kind in China. The UBS venture has registered capital of 100 million yuan.
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