JPMorgan poised for historic majority stake in China funds: report

JPMorgan is about to become the first foreign company to hold a majority stake in a Chinese mutual fund business, according to a Reuters report.

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The nation's biggest bank reportedly obtained a 2 percent stake in China International Fund Management at the Shanghai United Assets and Equity Exchange, Reuters reported.

The exchange did not identify the buyer in a filing on Friday, but sources told Reuters that JPMorgan was the only bidder. JPMorgan already held a 49 percent stake in the venture, bringing its total control to 51 percent.

The company did not immediately respond to a FOX Business request for comment.

A rule change in 2017 allowed foreign asset managers to own up to 51 percent of their Chinese mutual fund ventures; however, none have raised their stakes yet.

The news comes in the midst of heightened trade tensions between the U.S. and China. This week, President Trump slapped a 10 percent tariff on $300 billion worth of Chinese goods, ending a months-long tariff ceasefire and ratcheting up pressure with Beijing, which vowed to retaliate.