In JP Morgan’s JV buy, some see snares of China

The US firm paid a ‘ransom’ for JV control. Others mull what that means for their own China strategy

Just last month, JP Morgan Asset Management became the first foreign firm to get hold of a majority stake in an asset manager in China. Adding 2% to the 49% stake it already held in the China International Fund Management (CIFM), JP Morgan nudged its holding up to 51%, and management control.

But the price it paid for that stake was staggering: a 33.9% premium over the venture’s stated value in public filings. This, despite JP Morgan being the only suitor at auction.

Industry-watchers were

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