JPMorgan Asset Management has become the first asset manager to be approved to establish an Asset Management Wholly Foreign-Owned Enterprise (AM WFOE) in Shanghai, the company has announced.
The firm has received business licence approval from the Market Supervision Administration of China (Shanghai) Pilot Free Trade Zone to incorporate JP Morgan Asset Management (Shanghai) Limited, an entity that will be fully-owned by JP Morgan in China.
With the AM WFOE business licence, JPMAM has established a new onshore entity in the free trade zone in Shanghai, which is designed to increase the firm’s long-term strategic presence in China.
The new licence builds on 12 years of work with Shanghai International Trust Co. in developing China International Fund Management Co. Ltd (CIFM) and its participation in initiatives including the Shanghai-Hong Kong Stock Connect and Qualified Foreign Institutional Investor (QFII).
Commenting on the announcement. Michael Falcon, JPMAM’s chief executive officer of Asia Pacific, said: 'J.P. Morgan and its predecessors have conducted business in China since 1921.'
'We are incredibly proud to have our service to clients, our capabilities and our business acknowledged with a formal license to establish our AM WFOE in China.'
'We appreciate the guidance and support from governments and regulators, especially the Shanghai Municipal Office of Financial Service, the China (Shanghai) Pilot Free Trade Zone Administrative Committee and the Pudong New Area Government throughout the application process, and acknowledge the tremendous effort put forth by our collaborative teams to achieve this goal.'