JPMorgan and First Capital set up stock JV
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JPMorgan Chase & Co and Shenzhen-based First Capital Securities Co yesterday agreed to set up a joint venture to underwrite and sponsor deals in China's equity market.
The Wall Street company will own 33 percent of the joint venture and First Capital will take the balance, JPMorgan said in a statement yesterday without disclosing how much was invested in the new venture. The deal still requires regulatory approval.
Earlier media reports said the joint venture's registered capital is likely to be 1 billion yuan (US$146 million). In March, the two sides signed a memorandum of understanding on the securities firm.
JPMorgan oversees US$2.1 trillion in assets and its business covers more than 60 countries and regions. First Capital, with a registered capital of 1.59 billion yuan, has a presence in 12 cities in China.
The deal is part of JPMorgan's efforts to compete with its rivals such as Goldman Sachs to grab a share of China's sizzling securities market.
In December 2007, China made it easier for overseas firms to participate in domestic brokerages via joint ventures.
Overseas firms, including Goldman Sachs, Credit Suisse and UBS AG, have formed stockbroking joint ventures.
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