JP Morgan Forms China Securities JV with First Capital Securities

The new joint venture will underwrite and sponsor deals in China's securities market; First Capital Securities will hold 67% of the JV and JP Morgan will hold the remaining 33%.

J.P. Morgan announced on Wednesday it has signed a deal with First Capital to form a joint venture, which will allow it to underwrite and sponsor deals in China's securities market.

Under the deal, J.P. Morgan will hold 33 percent of the joint venture, the maximum amount foreign firms are allowed to own in securities tie-ups, and First Capital will hold the remaining 67 percent.

A top executive in J.P. Morgan had told Caijing that the both parties, who had signed a MOU in March, will have rights to appoint directors and management executives to the joint venture in proportion to their holdings.

First Capital was established in 1993, with a registered capital of 1.59 million yuan and a presence in 12 cities in China.