JPMorgan looks to China for growth

JPMorgan Chase plans to expand its Chinese business, which CEO Jamie Dimon said during Friday’s earnings conference is a “long-term strategy.”

China could be a significant opportunity for growth, Dimon said, adding that, “Over the next 12 years China will equal the U.S. in terms of the stock and bond market,” saying that the bank, “Wants to do what it does in the U.S. in China.

Dimon added that the company is seeking licenses to expand its business in the world’s second-largest economy, noting that the bank already does some business in the country in Hong Kong, but wants to have a full set of licenses in the country, including for equity and debt trading in Shanghai.

Dimon noted that this “may or may not be affected by trade,” a reference to the ongoing trade war between the U.S. and China.

In May, JPMorgan applied to China’s securities regulator to set up a securities business of which the bank would own a majority stake. In late November, China announced it would remove foreign ownership limits on banks and permit international firms to take majority stakes in local securities firms, fund managers and insurers.

JPMorgan currently has some licenses in China, including JPMorgan Chase Bank (China) Co. Ltd., which has licenses for derivatives, foreign exchange and local currency trading, government bond underwriting, trade finance, cash management and commercial banking. JPMorgan Asset Management (Shanghai) Ltd.’s licenses include asset management, investment management and investment advisory.