US Finance Tycoon: "Establishing 100% Chinese Subsidiaries Benefits US Companies"... Blocking Security Controversies

JPMorgan Secures 100% Stake in Chinese Subsidiary... First Case for Foreign Financial Firm
Dismisses Security Concerns Amid US-China Tensions as "I Am a Patriot"

[Asia Economy New York=Correspondent Baek Jong-min] China has fully opened its financial market to JP Morgan Chase, the largest bank in the United States. It is the first time China has allowed a 100% American-owned securities firm. Jamie Dimon, CEO of JP Morgan, emphasized that despite the expanding US-China conflicts, this development will not threaten US security.

Jamie Dimon, CEO of JP Morgan [Photo by Reuters]

On the 6th (local time), JP Morgan announced in a statement that "the China Securities Regulatory Commission (CSRC) has approved JP Morgan's 100% ownership of its securities subsidiary in China." This is the first time a foreign company has owned 100% of a Chinese securities firm.

JP Morgan increased its stake in its Chinese subsidiary, established as a joint venture in March last year, to 71%, and then fully acquired it within 10 months.

JP Morgan plans to conduct most banking operations through its Chinese subsidiary, including corporate finance, stock trading, commercial banking, investment banking, and asset management.

Jamie Dimon, CEO of JP Morgan, stated in the announcement, "China represents one of the biggest opportunities in the world for JP Morgan and its clients," adding, "JP Morgan's scale and global capabilities can uniquely help Chinese companies grow globally."

JP Morgan has been strengthening its China-related business, recently leading the US stock market listing of the controversial Chinese ride-sharing app Didi Chuxing.

One major foreign media outlet described China's recent move as a clear signal responding to US pressure for capital market opening.

According to The Wall Street Journal (WSJ), even after 30 years of stock market opening, the presence of foreign financial firms in China remains extremely limited compared to local financial firms.

WSJ also noted that amid recent Chinese regulatory actions against Alibaba, Didi, Tencent, and private education companies, which have reduced foreign investors' investments in China, the Chinese authorities' approval of 100% foreign-owned securities firms is significant.

Chinese authorities had limited foreign ownership in joint venture securities firms to a maximum of 51%, but allowed 100% ownership starting April last year. This was a measure following the promise to open China's capital markets in the Phase One US-China trade agreement signed in January last year.

In an interview with Fox News on the 8th, CEO Dimon also emphasized that expanding investment in China would benefit not only JP Morgan but also American companies.

He said, "US foreign policy wants JP Morgan to properly expand and serve American companies," dismissing concerns about expanding business in China.

When asked if expanding business in China would affect national security, Dimon replied, "I am a patriot before money or JP Morgan," dismissing the concerns.

Dimon also clearly stated that he would not share financial information with the Chinese government, saying, "I do not worry about the Chinese like others do," showing little concern about interference from Chinese financial authorities.

This content was produced with the assistance of AI translation services.