JP Morgan to hold the first venture securities broker

With only one paper to go, JPMorgan Chase, which has been in China for 9 years, has been able to j.p.morgan the long-awaited qualification of a joint venture broker. In early June, JPMorgan announced the establishment of a joint venture securities company in partnership with first venture Securities. According to the agreement, the first venture holding 67%, JPMorgan Chase is 33%.　　The JV will underwrite business in the Chinese market, at least in the future underwriting business and B-share brokerage business, as for other business scope, will be determined with the development of joint venture securities business. "It will take two months for the joint venture to be approved by the regulator," according to the time reporter from JPMorgan.　　The newly established joint venture Securities company may be registered in Beijing or Shenzhen.　　Five years of joint venture securities in the dream before the negotiations with the first venture capital, JPMorgan Chase in 2006 to build a joint venture broker, has spent four years with Liaoning Securities and Bohai Securities, but not in the end. Gaby Abdelnour, JPMorgan's Asia Pacific chief executive, said in March this year that it was frustrated that a joint venture in China had been preempted by rival Goldman Sachs and UBS.　　"To tell everyone to set up a joint venture this year," he said.　　Shortly after, JPMorgan signed a memorandum of understanding with first venture securities and plans to set up a joint venture with a registered capital of $1 billion. According to The Times reporter, JPMorgan's newly appointed chairman, Shao, last year, played an important role in the cooperation.　　As an Asian managing partner at the former Linklaters law firm, Shao was involved in a number of international financial institutions ' strategic projects to enter China during the period, in particular the establishment of Goldman Sachs Gao and UBS Securities, to help Goldman Sachs and UBS set up joint ventures in the mainland. "JPMorgan's choice of Shao, who does not have any investment banking background, as chairman and chief executive of the Chinese business is due to the background of Shao's work during the period. "Analysts at the investment bank said.　　J.P. Morgan's chairman and chief Executive Dimon (Dimon) was also outspoken in his visit to Shao's appointment. Data show that the first venture securities formerly known as Foshan Securities, was established in April 1993, the original registered capital of 10 million yuan. 2002, the company increased to 747 million yuan, registered to move to Shenzhen, and renamed the first Venture Securities, 2008, the company registered capital reached 1.59 billion yuan.　　The first major shareholder of the first venture securities is Huaxi Yu Investment Co., Ltd., the shareholding ratio is 16.98%.　　According to wind information statistics show that since the start of the IPO, the first venture to achieve a total underwriting and sponsorship costs of 19,600 Yuan, ranked 18th in 74 brokerages.　　After China's first-hand venture, JPMorgan has become one of the few financial institutions in China with a relatively complete licence, involving investment banking, commercial banking, risk management, foreign exchange, bond underwriting, cash management, trade finance and private equity investment. At present our country joint ventureBrokers have 7, respectively, CICC, UBS Securities, Goldman Sachs Gao, China-Europe International, sea and Yamato, credit founder, Sino-German securities.　　If the JPMorgan project, the number will increase to 8. The number is still increasing.　　On March 8 this year, Royal Bank of Scotland said publicly that it intends to set up a joint venture in China and has identified its partners, and the Australian investment bank Macquarie and Hengtai Securities have signed a co-operation agreement, Citigroup and Zhongyuan securities are also in contact.　　Meanwhile, Morgan Stanley's deal to sell its 34.3% CICC stake is coming to an end, and Morgan Stanley is expected to co-operate substantially with Huaxin securities. "With the expansion of China's capital [4.21-1.41%] market, stock index futures and the introduction of innovative businesses such as margin trading, it is no doubt a good choice for international investment banks to share the investment income brought about by the high growth of China's capital market."　　"Industry analysts said.　　Chi Ming also told the media earlier that JPMorgan had no doubt the most wanted to enter the Chinese securities sector, as the Chinese securities market began to develop 5 years ago, the Government also actively support. With the opening of the International Board, the joint venture has a greater space in China. "There are bigger projects to be done," said Zhou Jun, vice president of first venture Securities. In particular, after the launch of the future international board, JPMorgan has a lot of customer resources in this area, they also have a certain advantage in customer development and maintenance. "Moreover, there are signs of a loosening in the regulatory policy of joint venture brokers entering the brokerage business."　　CLSA said earlier this year that the brokerage and research business of wealth CLSA would be launched in the two quarter of 2010, but its brokerage business would be limited to the Yangtze River Delta region in order to avoid competition from shareholders. All this has accelerated the pace at which foreign investment banks are doubling China. However, it is noteworthy that, in the CICC of several joint ventures, although the foreign all occupy a dominant position, some of the business is also quite successful, but in view of the inherent foreign shareholders of the joint venture securities, their own positioning and other issues, the development of the joint venture in China is not smooth sailing, but a few happy several