JP Morgan pumps $394 mn into China unit
29 May 2012
US banking giant JP Morgan Chase & Co said yesterday that it has injected 2.5 billion yuan ($394 million) into its Chinese subsidiary JP Morgan Chase Bank (China) Co Ltd to expand the bank's operations in the world's second-largest economy.
"The additional capital will better position the bank in the evolving regulatory environment and cement our commitment to clients in China," Zili Shao, chairman and chief executive of JP Morgan China, said.
"The capital will be used to expand the bank's branch network, develop products, increase corporate lending, and recruit employees," Shao further added.
Other global banks including HSBC, Singapore's DBS Group and Australia and New Zealand Banking Group (ANZ) are already injecting more capital into their Chinese units anticipating a bigger chunk of the banking business of the world's fastest growing major economy, despite the recent slowdown in the country's economic growth.
Last year HSBC injected around 2.8 billion yuan in China, and DBS and ANZ also have plans to invest around 2.3 billion and 1.9 billion yuans respectively in the near future.
China has the world's third-largest banking system after the US and Japan with assets of around 114 trillion yuan.