Friday, November 25, 2011

JP Morgan PEU Does Chinese JV

WSJ reported:

JP Morgan Asset Management, an arm of U.S. bank JP Morgan (JPM), has received permission from the Beijing city government to create a US$1 billion RMB fund under the new Qualified Foreign Limited Partner program

The fund will be named the JPM China Private Equity Fund.

The Private Equity Group is a bottom-up, opportunistic investor in all private equity investment types, stages of business development, industry sectors and geographical locations, and during all market environments.

JP Morgan joins other "bottom feeding" PEU funds in China, including The Carlyle Group, Blackstone, TPG Capital and the Infinity Group

JPM China is a joint venture with the Beijing city government.  This brings to mind a statement from an ex-Bloomberg reporter:

I can't tell if the PE guys are being insincere when they talk about China or they are actually stupid. There is no way that the Chinese govt would let American firms come in and strip cashout of Chinese companies the way they've been allowed to in the US! I imagine the Chinese welcome the PE guys because they see it as another way (through PE orchestrated mergers) to get hold of more American technology and companies and jobs.
A decade of US job shedding to China will continue courtesy of bankster and tax avoider JP Morgan.  Morgan joins Carlyle in helping America's greatest future enemy, at least that's the view of a Carlyle Group Managing Director :

"China does view financial power as an exercise of power in a way that the United States does not. The United States only exercises financial power through its corporations.”
I'll take that as an admission of America's Government-Corporate Monstrosity, Eisenhower's Military-Industrial Complex on steroids.

Update 12-19-20:  Chinese bank pairs up with PEUs.