Menu
Banking Exchange Magazine Logo
Menu

JP Morgan Chase Joins Swiss Banks in Looking to Increase China Presence

Dimon is betting on a more advantageous regulatory climate for foreign banks

  • |
  • Written by  Banking Exchange staff
  • |
  • Comments:   DISQUS_COMMENTS
JP Morgan Chase Joins Swiss Banks in Looking to Increase China Presence

UBS and Credit Suisse are planning to increase their presence in China, even as CEO Jamie Dimon has vowed to bring JP Morgan Chase into a dominant position in the region.  Part of the plan for JP Morgan is to consider establishing a private bank to take advantage of both the business and high net worth market in main land China.  

Experts say that Dimon is betting on a more advantageous regulatory climate for foreign banks than in recent years that might level the competitive playing field. While China still falls far behind in average household income compared not only to the United States but most western countries, the country ranks second among all nations with the wealthiest high net worth individuals, according to Forbes magazine. 

In addition to the private bank business, JP Morgan Chase is lobbying for a joint venture business in China that would allow them to own the majority of the entity.  The Swiss Banks already have a strong presence in China, and will likely expand due to the loosening of restraints on foreign banks.  

The move by main land China to warm to foreign banks may have a negative effect on Hong Kong and Singapore’s financial sectors, as well as its overall economy.  The two regions have benefitted from global banks managing Chinese money offshore, and thus would likely spur these banks to compete on the mainland instead. Several banks are already looking to staff up on the mainland, whereas the red hot market for financial talent in Hong Kong and Singapore have cooled off a bit in recent months.  

The Chinese economy has had its slowest growth in decades as of late as they continue to negotiate trade deals with President Trump. Analysts believe the United States is negotiating under a position of strength due to the slow down in China. It is possible that in many ways, China has already made the bet that it is to their advantage to open up sectors such as the banking industry to foreign entities.  It is a strategic move to encourage individual and corporate assets to stay in the country.   

back to top

Sections

About Us

Connect With Us

Resources

Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.

REGISTER NOW!

This webinar is brought to you by:
Vouched Logo