JP Morgan Chase invests heavily in China

JPMorgan Chase & Co has raised its capital of its Chinese division to over US$1 billion to exploit broader opportunities arising from a further liberalization of China’s banking sector.

JPMorgan Chase has invested US$394 million in JPMorgan Chase Bank (China) Company and will utilize the added capital to boost corporate lending and launch new products.

The additional capital will also allow JPMorgan Chase to meet stringent capital requirements required by the Basel Committee. The capital ratio for larger and important banks such as JPMorgan Chase is 11.5% while for systemically less important banks it is fixed at 10.5%.

In addition, the bank has received permission from the China Banking Regulatory Commission to open a new branch in Suzhou. This new branch will allow the bank to meet the financial and banking needs of the institutional and corporate clients in that region.

JPMorgan Chase also provides investment banking services in China through a joint venture and asset management services through another JV.

JPMorgan Chase is the largest bank in the United States by assets and market capitalization. With assets of US$2 trillion, it is also the world's largest public company.