US bank ponders China expansion

JPMorgan Chase & Co will make a substantial investment to build its corporate banking business in China in a bid to win more large foreign multinational clients as well as Chinese companies with rising global ambitions, said a senior executive of the US bank.

JP Morgan will invest about $100 million this year to expand its global branch network and a substantial proportion of this will be in China, Gregory L. Guyett, chief executive officer of JP Morgan's Global Corporate Bank, told China Daily in a recent interview.

At the end of last year the US bank launched an initiative to accelerate its global corporate banking business aimed at increasing revenues from markets outside the US to gain a competitive edge over weakened competitors such as HSBC and Citigroup after the financial crisis.

Emerging markets such as China, Brazil and India are the top priorities of JP Morgan's global expansion strategy.

"We want to emphasize to our clients in China that we have broad capabilities beyond mergers and acquisitions and equity offerings. We have products in debt financing, treasury management, commodities and hedging as well," he said.

The US bank currently has five branches in China and plans to expand the network in the next few years to help Chinese companies gain access to the international market and to serve foreign multinationals in China.