by SUN Yizhen

With systematic financial market reforms underway in China, foreign institutions are racing to boost their investments. Rooted in a 104-year history in China, JPMorgan Chase – home to the nation's first wholly foreign-owned securities and futures firms – is among the pioneers in this opening. In a recent interview with Jiemian News, joint chief executives Jenny Chan and Ho Yiu-tung highlighted how enhanced interconnectivity in bond and stock markets is spurring investment innovation and opening new channels for foreign investors, while technological breakthroughs and Chinese companies'global push create fresh business opportunities.

Jiemian News: What does the China market mean to JPMorgan Chase, and how did the bank establish its presence here?

Ho: JPMorgan has been in China for 104 years. Initially, we served multinational companies entering the Chinese market. In 2007, we launched our first legal entity bank in Beijing—the first foreign-headquartered bank in the mainland—to better serve cross-border clients. Since then, we have broadened our focus to include domestic firms and now support Chinese companies seeking to go global with listings and financing in markets such as Hong Kong and the United States.

 

Jiemian News: How has China's rapid economic transformation influenced your business strategy?

Chan: China's evolution—from a manufacturing hub to the world's second-largest economy contributing nearly 17 percent of global GDP – shows a consistent drive to optimize its economy. We have helped connect Chinese enterprises to global capital markets throughout this transformation. Our role in bridging these markets reinforces our long-term commitment and positions us to benefit from future growth.

 

Jiemian News: What are the key milestones in JPMorgan's development in China?

Ho: Our journey is marked by several milestones. After David Rockefeller's visit in 1973, our precursor bank became the first overseas agent for the People's Bank of China in the US In 1994, we established representative offices in Beijing and Shanghai. Then, in 2007, we launched our first legal entity bank. We later achieved full control of a joint-venture futures company in 2020 and, in 2021, became China's first wholly foreign-owned securities firm. In 2023, our asset management arm also reached full local ownership, making us the only foreign institution in China with complete entities in banking, securities, futures, and asset management.

 

Jiemian News: How have China's financial reforms and market openness benefited your operations?

Chan: Enhanced interconnectivity between bond and equity markets has broadened investment opportunities and spurred business innovation. Regulatory reforms have eased market entry for foreign institutions, enabling us to offer new products and services. These changes have also made it easier for overseas investors to tap into China's vast market, boosting our ability to serve a wider array of clients.

 

Jiemian News: In what ways is technological innovation in China creating new opportunities for foreign financial institutions?

Ho: China's advances in technology, particularly in AI and robotics, are reshaping financial services. At JPMorgan, we've been integrating AI into our operations for nearly a decade, sharing insights and collaborating with local firms. These technological breakthroughs help us streamline operations and develop innovative products, positioning us to better support clients both in China and internationally.

 

Jiemian News: What does "high-level opening up" mean for the financial sector, and how is it impacting your strategy?

Chan: "High-level opening up" refers to the deepening of market reforms that relax restrictions on foreign financial institutions. Recent policies have removed ownership limits in areas like securities, futures, and banking, significantly expanding our growth potential. These reforms not only enable us to operate in more segments of the market but also foster greater collaboration with domestic institutions, driving further innovation and investment opportunities.

 

Jiemian News: What challenges do foreign institutions face in China, and how does JPMorgan address them?

Ho: Navigating China's rapidly evolving regulatory environment is challenging. The market's fast-paced growth requires strict adherence to compliance while staying agile. At JPMorgan, we invest heavily in technology and talent to manage these complexities. For instance, our global investment of US$17 billion (123.8 billion yuan) in advanced systems has enhanced our ability to maintain operational stability and meet rigorous compliance standards.

 

Jiemian News: What key factors should be prioritized to create a favorable business environment for foreign investors in China?

Chan: Policy certainty and transparency are vital. The recent 2025 action plan, which outlines measures to stabilize foreign investment, is a positive sign. Consistent and clear policies in areas like tax regulation, disclosure, and market access are essential to build investor confidence. These measures create a predictable environment that encourages long-term foreign capital inflows.

 

Jiemian News: What new opportunities do you see beyond traditional banking and securities?

Ho: There is significant potential in supporting Chinese companies as they expand internationally. We provide expertise in navigating foreign regulations, managing risks, and structuring deals that suit diverse market conditions. Additionally, sectors like green energy, advanced manufacturing, and the digital economy are emerging as key areas for investment, further diversifying our business portfolio.

 

Jiemian News: How does JPMorgan avoid homogeneous development in a competitive market?

Chan: The key is investing in talent. Our employees drive innovation, adaptability, and problem-solving across the organization. By offering competitive compensation, extensive training, and a global platform for career growth, we ensure that our teams can tailor solutions to meet local market needs while staying aligned with international best practices.

 

Jiemian News: What strategic advantages does JPMorgan offer to support Chinese companies going global?

Ho: Our global network is a major strength. With operations on five continents, we provide comprehensive support—from navigating local laws and tax regimes to developing market entry strategies. This network, combined with decades of experience, allows us to offer tailored solutions that help Chinese firms expand and thrive on the global stage.

 

Jiemian News: Looking ahead, how do you expect China's financial markets to evolve, and how will JPMorgan adapt its strategies?

Chan: We anticipate continued deepening of reforms and greater international integration in China's financial markets. As domestic and foreign investors gain equal footing, cross-border capital flows and market efficiency are likely to increase. Our strategy will focus on innovation, compliance, and talent development. By leveraging advanced technology and our global expertise, we aim to further reduce transaction costs and broaden our product offerings to meet evolving client needs.

 

Jiemian News: What final message would you share about China's financial future?

Ho: Balancing risks and opportunities is essential. Continued policy improvements, enhanced transparency, and fair market practices are key to maintaining investor confidence. For us, understanding and adapting to these dynamics is at the heart of our mission. We remain committed to fostering a vibrant financial ecosystem that supports both innovation and stability, ensuring that China's market remains open and resilient for years to come.