(Hong Kong) – JP Morgan unit JF Asset Management and Shanghai’s Huaan Fund Management are still in discussions to for a joint venture fund management company in China, but the negotiations are proceeding slowly.JF Asset Management has been involved with Huaan since 2001, when the two signed a technical cooperation agreement under which JF acted as an adviser to the Huaan Innovation Fund, China’s first open-end mutual fund.
In November, JP Morgan Chase Vice Chairman David A. Coulter said talks with Huaan were proceeding at a disappointingly slow pace.
One sticking point is reportedly JF’s buy-in price, with Huaan believed to be asking as much as US$60 million for a 33 percent stake.
Other western financial groups, such as ING, SG and Allianz have all recently formed Chinese fund management joint ventures.