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JP Morgan seeks another Chinese wealth management JV

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JP Morgan is reportedly in talks with China Merchants Bank to set up an entity

US-based investment bank and financial services company JP Morgan is seeking another Chinse wealth management joint venture, media reports said. The bank is currently in talks with China Merchants Bank to establish a new entity.

JP Morgan is not the only multinational bank or entity eyeing the wealth management space in China., which is estimated to grow to as much as $30 trillion in 2023. By establishing its joint venture JP Morgan would be competing with a joint venture between Blackrock, Temasek and China Construction Bank, which was approved in August 2020, as well as an Amundi-Bank of China JV.

JP Morgan’s asset management unit posted an increase in revenue of 5 percent to reach $3.7 billion during the third quarter of 2020, media reports said. Assets under management were also up by 16 percent year-on-year to reach $2.6 trillion.

According to chief financial officer Jennifer Piepszak, the increase in revenue is attributed to higher deposit and loan balances.  It is reported that deposit balances increased 23 percent year-over-year to $171 billion, while loan balances were up 13 percent year-over-year to $170 billion.

In December, it was reported that Goldman Sachs is planning to bring its wealth management services to the masses. The bank has started internal testing of the digital service, called Marcus Invest. The new service is expected to be available for the masses in 2021.

According to the media, Goldman Sachs said in an internal memo, which was signed by Tucker York and Stephanie Cohen, co-heads of the consumer and wealth management division, “As we prepare for the public launch in Q1 2021, we are pleased to invite consumer and wealth management colleagues to provide early feedback on Marcus Invest through our beta programme”.

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