U.S. giant J.P. Morgan is set to expand its business in China and has therefore decided to increase its tech staff to prepare the bank for the challenges posed by the move.
J.P. Morgan has applied to set up and take a controlling stake in a joint venture brokerage in China. To support the move, the U.S. bank intends to increase the Hong Kong-based technology staff by 20 percent, according to a report in the «South China Morning Post».
The decision to invest in a greater presence in China means that a larger percentage of the $10.8 billion budget earmarked for technology worldwide at the U.S. bank will be used to hire tech experts in Hong Kong and mainland China. J.P. Morgan has agreed to lease some 225,000 square feet of office space at The Quayside in Kowloon Bay, Hong Kong, with the purpose of housing the additional members of staff.
Chinese Century
China is in the process of opening up its capital markets to foreign companies. The country's financial market regulator now permits foreign players to take majority stakes in joint venture brokerages. Morgan Stanley, Nomura and UBS have also lodged applications for such ventures.
J.P. Morgan Chief Executive Jamie Dimon sees great business opportunities in China. He recently visited the country and, in a rare interview, said the bank was «building in China for the next 100 years».
