JPMorgan is in talks to quit its China securities joint venture with First Capital Securities in what would be the first such pullback by a western bank, although it denies the move would represent a retreat from the Chinese market.
The US bank and its Chinese partner confirmed on Thursday that they were in talks over the future of JPMorgan First Capital but added that no deal had been reached. JPMorgan owns a third of the joint venture set up in 2010 as one of a series developed by western banks to gain a toehold in mainland markets.
Most of the ventures are thought to have struggled financially, however, as the partners wrestled with priorities and the system of control. A rule change in 2012 allowed international partners to increase their stakes from one-third to 49 per cent but no western bank has yet done so.