JP Morgan provided no comment on the reasons behind the suspended partnership talks, only saying the firm was still interested in expanding to take advantage of China’s burgeoning funds industry, according to Reuters. JF Asset Management, the fund management division of JP Morgan, had earlier expressed interest in taking an equity stake in Huaan. In 2001, the firm signed a memorandum of understanding with Huaan on the launch of China’s first Western-style mutual fund.
Since then, other fund managers have also been eager to enter into China’s $1.2-trillion savings pool. Both ING Groep NV and France’s Societe Generale are in the final stages before releasing fund products in China later this year.
Additionally, Invesco, a unit of investment firm Amvescap PLC, has been awarded initial approval from Chinese regulators to set up a venture (See INVESCO Crosses the Great Wall With New China Firm ) and Germany’s Allianz AG and Fortis NV are awaiting final approval for their expansion plans.