JPMAM acquires stake in CMB’s wealth management arm

JP Morgan Hong KongJPMorgan Asset Management has bolstered its presence in China’s onshore market after acquiring a 10% stake in China Merchants Bank’s asset management business. The deal will see JPMAM invest CNY2.67 billion (US$410.6 million) in CMB Wealth Management (CMBWM). It is an extension of a partnership formed in 2019 that focused on product development and investor education. As part of the latest arrangement, the two firms will work together on designing asset management products across multiple asset classes for Chinese investors. It means JPMAM is the first foreign firm to invest directly in an existing wealth management business as opposed to taking a bigger stake in a new joint venture, an approach adopted by the likes of Schroders, Amundi and BlackRock. "Rather than formulating a separate new joint venture entity with CMBWM, this strategic investment uniquely and directly connects us to accelerating our co-operation with CMBWM's already established product and distribution momentum," said Dan Watkins, chief executive of JPMAM for Asia Pacific. © 2021 funds global asia

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