JP Morgan Chase & Co has applied to the China's securities regulator to form a new securities company in which it will hold a 51 percent stake, the US bank said today.
The application is part of the US bank's package of initiatives, including the appointment of a new chief executive officer for China, to further grow its onshore business in the country.
The bank's corporate & investment bank unit has submitted an application to the China Securities Regulatory Commission to establish a new, fully-integrated securities company in which it will hold 51 percent. The bank said it will increase its stake to 100 percent in accordance with regulations over the next few years.
The banking giant's asset and wealth management business is also seeking to increase its stake to a majority interest in China International Fund Management Co Ltd, a joint venture between JP Morgan Asset Management Ltd and Shanghai International Trust Co Ltd, according to a latest statement from the lender.
"We will hire people, lend to businesses, support the development of markets and strengthen communities through philanthropic initiatives," said Jamie Dimon, chairman and chief executive officer of JP Morgan Chase.
He added these developments are important for China, the US and global commerce, and an "encouraging sign" for the world's two largest economies.
The bank also said today it has appointed Mark Leung as the chief executive officer of China. Leung will be responsible for managing onshore and offshore activities in the country, helping to bring JP Morgan's global network and resources to the country.
In a 21-year-long career with JP Morgan, Leung has worked in Hong Kong, Singapore and Japan. Most recently, he served as the co-head of global equities & prime services.
The bank is also looking to double its research coverage of China-listed companies across all sectors, and intends to significantly increase its hiring of talented graduates from local universities.
JP Morgan became the first non-Chinese bank to be appointed by the People's Bank of China as a yuan clearing house in the US. The US bank also recently signed a Memorandum of Understanding with the Industrial and Commercial Bank of China to support Chinese enterprises going global and multinational companies coming to China.
