The Wall Street Journal is reporting that J.P. Morgan Chase (JPM) has hired Ben Shenglin to head its corporate banking business in China.
This is the latest move to support the financial firm’s announced intention to expand their corporate banking arm to better serve its existing multinational clients. The move is also part of a strategy to grab market share in emerging markets from industry leaders Citigroup Inc. (C) and HSBC Holdings PLC (HBC).
Shenglin was formerly the head of commercial banking in China for HSBC. He will report to Zili Shao, who was named head of the New York bank’s China operations in November.
One of his priorities is to seal a joint venture with a Chinese securities firm so that the U.S. bank can work on domestic share sales. A tie-up between Credit Agricole SA’s Asian brokerage subsidiary and Citic Securities Co. expected to be announced soon, is the latest move by foreign banks to strengthen their foothold in China’s fast-growing capital markets.
Shenglin will also report to Greg Guyett, who will be leading J.P. Morgan’s corporate banking business globally. Guyett currently heads J.P. Morgan’s Japanese operations.
J.P. Morgan is investing more than $100 million in bolstering the corporate banking business, which was launched as a collaboration between its treasury services and investment banking arms about three years ago.
Their initial expansion plans focus on the fast-growing economies of China, India and Brazil.
“We see an opportunity to pull together services for global multinationals operating in China and large Chinese companies with international aspirations,” said Mr. Guyett in an interview.
As proof of the high expectations they have for China, J.P. Morgan has increased the number of branches across China from three to five and plans to double the number of corporate bankers in China by year-end.
In November, J.P. Morgan made an internal announcement that focused on a big push into corporate banking. It is seeking to act as the provider of financial “plumbing” for multinationals, offering such services as cash management and trade finance.
At the time of that announcement, Madhav Kalyan was hired to head J.P. Morgan’s corporate banking business in India.
