JPMorgan says one market is ‘irreplaceable’ for asset managers
JPMorgan Chase & Co. will continue hiring in China for its asset management business as it targets growth in the world’s second-largest economy.
“China’s mutual fund industry remains an irreplaceable growth market for global asset managers,” Desiree Wang, JPMorgan Asset Management China chief executive, said in an interview Friday. “It offers a great certainty of growth.”
JPMAM China kicked off 2024 with an ETF tracking the new CSI A50 index, raising 2 billion yuan ($278 million) in less than 10 days. It was the only global asset manager among 10 such companies that created similar products. The fund will be listed on Tuesday.
Wang said the company will keep hiring in China, focusing on investment, research and distribution talent. “The company has no major downsizing plan for the asset management business” in the country, Wang said. JPMAM China plans to keep its headcount largely the same throughout the year.
Wall Street banks are navigating an increasingly challenging terrain, as China tightens scrutiny over its financial sector. Despite the country’s promises of opening up its asset management and pension sector for foreign firms, many have found it hard to increase market share, while others including Vanguard Group Inc. have retreated.
Other asset managers have also dialed back. Matthews International Capital Management is closing its Shanghai office, the company said Friday. Earlier this month, the chief investment officer of Goldman Sachs Group Inc.’s wealth management business said that “one should not invest in China.”
JPMorgan CEO Jamie Dimon said in January that calculating the potential upside for US firms investing in China has became more complicated, even though the country has been “very consistent” in
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