AGL 40.15 Increased By ▲ 0.15 (0.38%)
AIRLINK 130.20 Increased By ▲ 0.67 (0.52%)
BOP 6.83 Increased By ▲ 0.15 (2.25%)
CNERGY 4.63 No Change ▼ 0.00 (0%)
DCL 9.02 Increased By ▲ 0.08 (0.89%)
DFML 43.60 Increased By ▲ 1.91 (4.58%)
DGKC 84.11 Increased By ▲ 0.34 (0.41%)
FCCL 33.05 Increased By ▲ 0.28 (0.85%)
FFBL 78.30 Increased By ▲ 2.83 (3.75%)
FFL 11.78 Increased By ▲ 0.31 (2.7%)
HUBC 110.85 Increased By ▲ 0.30 (0.27%)
HUMNL 14.61 Increased By ▲ 0.05 (0.34%)
KEL 5.65 Increased By ▲ 0.26 (4.82%)
KOSM 8.34 Decreased By ▼ -0.06 (-0.71%)
MLCF 39.80 Increased By ▲ 0.01 (0.03%)
NBP 60.85 Increased By ▲ 0.56 (0.93%)
OGDC 200.02 Increased By ▲ 0.36 (0.18%)
PAEL 26.84 Increased By ▲ 0.19 (0.71%)
PIBTL 7.81 Increased By ▲ 0.15 (1.96%)
PPL 160.51 Increased By ▲ 2.59 (1.64%)
PRL 26.85 Increased By ▲ 0.12 (0.45%)
PTC 18.81 Increased By ▲ 0.35 (1.9%)
SEARL 83.70 Increased By ▲ 1.26 (1.53%)
TELE 8.18 Decreased By ▼ -0.13 (-1.56%)
TOMCL 34.50 Decreased By ▼ -0.01 (-0.03%)
TPLP 9.12 Increased By ▲ 0.06 (0.66%)
TREET 17.05 Decreased By ▼ -0.42 (-2.4%)
TRG 59.50 Decreased By ▼ -1.82 (-2.97%)
UNITY 27.81 Increased By ▲ 0.38 (1.39%)
WTL 1.43 Increased By ▲ 0.05 (3.62%)
BR100 10,544 Increased By 137 (1.32%)
BR30 31,957 Increased By 243.3 (0.77%)
KSE100 98,468 Increased By 1139.1 (1.17%)
KSE30 30,631 Increased By 438.5 (1.45%)

J.P Morgan was on Friday poised to become the first foreign company to hold a majority stake in a Chinese mutual fund business, two sources said, setting a precedent that one analyst said would trigger a wave of similar transactions. A 2% percent stake in the venture, China International Fund Management (CIFM), changed hands in an auction at the Shanghai United Assets and Equity Exchange.
In a filing on Friday, the exchange did not identify the buyer, but two sources with knowledge of the deal, which still needs regulatory approval, told Reuters that J.P Morgan Asset Management Co was the sole bidder. J.P Morgan, which had held 49% of the venture, declined to comment.
Under rule changes announced by China in late 2017, foreign asset managers were authorised to own up to 51 percent of their Chinese mutual fund ventures. But so far none had raised their stakes to absolute majorities. Last month Beijing, embroiled in a bitter trade war with Washington that is weighing on its economy, said it would scrap financial sector ownership limits in 2020, one year earlier than scheduled.
Also on Friday, Morgan Stanley became the latest of a handful of foreign firms to take a majority stake in a China-based brokerage venture, also buying a 2% stake. Peter Alexander, Managing Director of Shanghai-based fund consultancy Z-Ben Advisors, said both transactions were likely to be the tip of an iceberg.
"China policy, irrespective of ongoing bilateral trade issues, is centred on the opening up of the local financial services industry to global participation," Alexander said, referring to the escalating Sino-US trade war.

Copyright Reuters, 2019

Comments

Comments are closed.