JPMorgan Chase & Company (JPM) said on Monday that it has appointed Zili Shao as chairman and chief executive of its China operation. It has also appointed Fang Fang as vice-chairman of its Asia Investment Banking operations.
The company has initiated management changes to strengthen its China operations as Chinese companies are now closely focusing on domestic as well as global expansion.
Mr. Shao, currently the head of the Asian practice at the law firm Linklaters, is experienced in some of the biggest financial deals involving China, including the acquisition of Guangdong Development Bank and Industrial and Commercial Bank of China’s purchase of a $5.5 billion stake in Standard Bank of South Africa. Mr. Shao will assume his new responsibilities at JPMorgan’s China business in late January.
Mr. Fang would be responsible for JPMorgan’s investment banking strategy and business development efforts involving China and all markets across Asia including Japan, Australia and India.
With their expertise, both Shao and Fang will help JPMorgan develop additional financial products and services for corporate and investor clients in China.
Business diversification has helped JPMorgan to achieve earnings stability during the ongoing downturn of the economy. This diversity may prove to be as much a positive during the recovery as it was during the downturn. Within traditional banking, a diversified product portfolio will sustain better than many other banks, which have exited some of these areas and become excessively dependent on a few products. Also, JPMorgan will be able to leverage its strong deposit base when interest rates finally rise.
However, while we anticipate continued synergies from the company’s diversification and strong capital position, we believe increasing provisions and worsening credit quality will be a drag on future earnings.
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