JPMorgan, Nomura expand China office spaceBusiness | 10 Jan 2020 10:11 am
JPMorgan Chase & Co. and Nomura Holdings Inc. are taking extra office space in China with both increasing headcount as China opens its US$45 trillion financial industry to more competition, Bloomberg reports.
New York-headquartered JPMorgan boosted its space in Shanghai Tower, China’s tallest skyscraper, to 20,000 square meters from 15,000 square meters, according to people familiar with the matter.
Nomura, Japan’s biggest brokerage, nearly doubled the size of its lease to around 5,000 square meters, the people said.
JPMorgan’s expansion comes less than a year after it relocated to Shanghai Tower in the Lujiazui financial district because it needed more room. The lender has been hiring more in recent months, a person said.
“This is a strong vote of confidence in their China business,” said Daniel Yao, head of China research at Jones Lang LaSalle Inc. “Foreign asset management companies have been at the forefront expanding in Shanghai.”
The office expansion is part of a long-term plan after the bank announced last year that it wanted to have all its Shanghai-based employees in one place, JPMorgan said in an emailed statement.
A Nomura representative declined to comment.
As of this month, foreign companies can apply for 100 percent control of insurance and futures ventures in China.
Come April, overseas players will be able to apply for licenses to start wholly owned mutual fund management firms.
According to China Center for International Economic Exchanges, global firms may plow 7 trillion yuan to 8 trillion yuan of assets onshore over the next few years. JPMorgan and Nomura both already have majority-owned securities ventures in China.