JPMorgan Chase & Co. will continue hiring in China for its asset management business as it targets growth in the world’s second-largest economy.
“ industry remains an irreplaceable growth market for global asset managers,” Desiree Wang, JPMorgan Asset Management China chief executive officer, said in an interview on Friday. “It offers a great certainty of growth.”
JPMAM China kicked off 2024 with an ETF tracking the new CSI A50 index, raising 2 billion yuan ($278 million) in less than 10 days. It was the only global asset manager among 10 such companies that created similar products. The fund will be listed on Tuesday.
Wang said the company will keep hiring in China, focusing on investment, research and distribution talent. “The company has no major downsizing plan for the asset management business” in the country, Wang said. JPMAM China plans to keep its headcount largely the same throughout the year.
Wall Street banks are navigating an increasingly challenging terrain, as China tightens scrutiny over its financial sector. Despite the country’s promises of opening up its asset management and pension sector for foreign firms, many have found it hard to increase market share, while others including Vanguard Group Inc. have retreated.
Other asset managers have also dialed back. Matthews International Capital Management LLC is closing it Shanghai office, the company said on Friday. Earlier this month, the chief investment officer of Goldman Sachs Group Inc.’s wealth management business said that “one should not invest in China.”
JPMorgan Chief Executive Officer Jamie Dimon said in January that calculating the potential upside for US firms investing in China has became more complicated, even though the country has been “very consistent” in opening up to financial-services companies.China’s
The lender has invested significant resources in the asset management sector in China. It gained full control of its China mutual fund joint venture last year, after buying out local partners toChina’sexpand in the 27 trillion yuan market. It also bought a stake in China Merchants Bank Co.’s asset management subsidiary for about 2.67 billion yuan.
Based in Shanghai, JPMAM China has been operating in China for 20 years. Originally known as China International Fund Management, the company changed its name last year. It offers more than 90 mutual fund products covering equities, fixed income and outbound investments via the Qualified Domestic Institutional Investor program.
Read the full article here by Lulu Yilun Chen, Yvonne Man of Bloomberg News, Advisor Perspectives
