China Everbright $2-bn HK listing sees JPM exit

Nov 20 2013, 09:45 IST
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SummaryJPMorgan Chase has withdrawn from the syndicate of banks working on a $2-billion listing by China Everbright Bank in Hong Kong, a person familiar with the matter said.

JPMorgan Chase has withdrawn from the syndicate of banks working on a $2-billion listing by China Everbright Bank in Hong Kong, a person familiar with the matter said.

JPMorgan’s withdrawal comes as it faces a number of investigations by US regulators, including a probe into its hiring practices in China. US authorities are investigating whether JPMorgan improperly gave jobs to well connected people in Asia to win business.

JPMorgan at one point hired Tang Xiaoning, the son of Tang Shuangning, chairman of state-controlled financial conglomerate China Everbright Group, and a

former banking regulator, The New York Times reported in August.

After the younger Tang joined JPMorgan, the bank won several important assignments from Everbright, including advising a subsidiary on a stock offering, the newspaper reported.

The probe has spurred several JPMorgan executives to hire lawyers in the US, a source said last week.

Shanghai-listed China Everbright Bank had said in March it would try again to issue up to 12 billion shares in a Hong Kong listing, after shelving similar plans in 2011 and again in 2012.

JPMorgan declined to comment.

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