JPMorgan Asset Management to invest in China bank's wealth management unit

FILE PHOTO: A J.P. Morgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith

HONG KONG (Reuters) - China Merchants Bank Co Ltd said on Friday its wealth management unit is expected to receive investment of 2.7 billion yuan ($414.80 million) from JPMorgan Asset Management (Asia Pacific) Limited.

JPMorgan would take a 10 percent stake in CMB Wealth Management as a strategic investor while the Shenzhen-based lender will retain a 90 percent stake, it said in a filing with the Shanghai stock exchange.

“The investment would deepen the cooperation between the bank and the strategic investor and is good for CMB Wealth Management to enhance its internal governance,” China Merchants Bank said in the filing.

Global financial firms are rushing to expand their footprint in China where the government fully opened up its giant financial sector to foreign companies last year. Schroders received permission last month to form a majority-owned wealth management venture with a unit of Bank of Communications (BOCOM), the country’s fifth biggest lender.

($1 = 6.5092 Chinese yuan renminbi)

Reporting by Meg Shen; Editing by Chizu Nomiyama