J.P. Morgan Chase & Co, the biggest US bank, has received permission from the Beijing city government to create a fund to make $1 billion of yuan-denominated investments around the city, the Wall Street Journal reported Friday, citing unnamed sources.
J.P. Morgan will run the pool in a joint venture with the Beijing city government and call it JPM China Private Equity Fund, according to the Journal. One of two people familiar with the matter said the fund will invest in sectors including consumer services, health care, technology and media, according to the report.
J.P. Morgan spokesman Doug Morris declined to comment on the report. US firms, including Blackstone Group LP, TPG Capital LP, and Carlyle Group, as well as private equity arms of Goldman Sachs Group Inc and Morgan Stanley, have been pushing to raise local currency funds to make more investments in China.