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View Count: 32 |  Publish Date: November 19, 2013
JPMorgan Said to Exit Everbright Bank Offering Amid U.S. Probes
By Cathy Chan - 2013-11-19T14:05:07Z Stock Chart for JPMorgan Chase & Co (JPM)
JPMorgan Chase & Co. (JPM) ended plans tomanage China Everbright Bank Co. (601818)’s Hong Kong share sale amid aU.S. investigation into the Wall Street firm’s hiring practicesin China, two people with knowledge of the matter said.
The U.S. bank told Everbright it would drop out because theprobe has delayed an internal approval process that’s requiredfor handling the offering, the people said, asking not to beidentified because the matter is confidential. Brian Marchiony,a spokesman for JPMorgan, declined to comment.
U.S. authorities are examining whether New York-basedJPMorgan violated anti-bribery laws by hiring the children andother relatives of well-connected politicians and clients inChina so that their family members would steer business to thefirm, a person with knowledge of the investigation said inAugust. JPMorgan said it was cooperating with the probes.
The U.S. Securities and Exchange Commission in Mayrequested records from JPMorgan concerning Tang Xiaoning, theson of China Everbright Group Chairman Tang Shuangning, the NewYork Times reported in August, citing a confidential governmentdocument.
Everbright Bank said last month that it won regulatoryapproval to sell as many as 12 billion shares in Hong Kong. LuHong, a board secretary at the bank’s Beijing office, didn’treturn a call seeking comment after working hours today.
The Chinese bank, which had planned to raise as much as $6billion from a sale in 2011, was aiming for $2 billion inproceeds in the latest round, according to two people withknowledge of the matter in March.
The Wall Street Journal reported JPMorgan’s decision toexit the equity offering earlier today. China InternationalCapital Corp., UBS AG and Morgan Stanley will remain on thedeal, according to the newspaper.
To contact the reporter on this story:Cathy Chan in Hong Kong at kchan14@bloomberg.net
To contact the editor responsible for this story:Chitra Somayaji at csomayaji@bloomberg.net

Keywords:
 China   Hong   Hong Kong   JPM   JPMorgan   Morgan   two people with   Everbright 

Picture Keywords
 China   Hong   Hong Kong   JPM   JPMorgan   Morgan   two people with   Everbright 
Time: 17:17  |  News Code: 345769  |  Site: bloomberg
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