Chinese bank denies rumors over deal with JP Morgan

An unnamed official from China Everbright Bank Co told news portal sina.com Monday that the selection of JP Morgan Chase & Co (JP Morgan) as its H-share lead underwriter was in accordance with normal and open business practices.

Everbright Bank has denied the cooperation was intended to siphon off profits.

This is the latest response to a report in the New York Times Saturday that the US government is carrying out an investigation into JP Morgan over whether it won business by hiring Chinese officials' children.

These children include Tang Xiaoning, son of Tang Shuangning, former vice chairman of the China Banking Regulatory Commission and current chairman of China Everbright Group, the parent company of Everbright Bank, the report said.

Tang Xiaoning joined JP Morgan in 2010.

The Everbright Bank official said the bank had been very cautious about choosing its H-share lead underwriter since the H-share listing is an important step in its development strategy, according to the sina.com report.

The official noted that, based on the principles of open and transparent operation, Everbright Bank publicly selected nine investment banks out of about 20 Chinese and foreign investment bank candidates for its main underwriter team for the H-share listing, including JP Morgan.

The official also claimed that the selection of JP Morgan was based on its professional competence as a well-known investment bank and also its rich experience in commercial banking, which can help ­promote Everbright Bank's ­investment value.