J.P. Morgan Asset Management has reached an agreement with Shanghai International Trust Co. to take 100% ownership of their Shanghai-based fund management company joint venture, China International Fund Management Co. Ltd.
Terms of the deal were not disclosed.
The deal is subject to approval from the China Securities Regulatory Commission and the completion of due diligence by JPMAM, according to a JPMAM news release Friday.
In August, JPMAM became the first foreign manager to take a majority stake in a fund management joint venture on the mainland, winning approval to take an additional 2% stake in CIFM, lifting its share to 51%.
With China dropping all foreign ownership limits on mainland-based fund management companies starting April 1, JPMAM is poised to become the first foreign manager to take a 100% stake in a joint venture.
CIFM, which JPMAM launched in 2004 with SITCO, currently reports 150 billion renminbi ($21.1 billion) in assets under management.
"We welcome China's removal of foreign ownership restrictions, enabling us to deepen our long-term involvement with CIFM to 100% ownership," Dan Watkins, JPMAM's CEO for Asia-Pacific, said in the release.
A Hong Kong-based spokeswoman for JPMAM declined to provide further details about the price of the deal or its anticipated timing.