The NYTimes has an article on JPMorgan Chase and Morgan Stanley receiving approval for joint venture securities firms in China.
JPMorgan and Morgan Stanley Win Approval to Expand in China
Published: January 7, 2011
SHANGHAI — JPMorgan Chase and Morgan Stanley said Friday that they had each won approval from Chinese regulators to form their own joint venture securities firms here, a move that will give each greater access to the fast-growing domestic capital market in China.
The two firms are the latest global banks to win the right to form joint ventures to underwrite stock and bond offerings in China. Eventually, the joint ventures will be able to sell and trade stocks to Chinese citizens and institutions.
JPMorgan Chase said it would partner with First Capital Securities and hold a 33 percent stake in the new firm that will be established. Morgan Stanley said it would hold a 33 percent stake in a joint venture it was forming with Huaxin Securities, which is also known as China Fortune Securities.
These companies follow the lead of others.
For now, Wall Street banks are content to form joint ventures in China. In 2004,Goldman Sachs won approval to form a joint venture securities firm in China that became Gaohua Securities. UBS, Credit Suisse and Deutsche Bank have each formed a Chinese joint venture with a local securities firm in recent years. All the firms hold minority stakes.
So, where would JPMorgan and Morgan Stanley put its data centers?
Somewhere where the Chinese regulators approve of like Winland International Finance Center or equivalent.
Winland International Finance Center
Winland International Finance Center is located at the core of Financial Street. Towards the south, there is the Capital International Finance Center, 5-star Intercontinental Hotel and China Reinsurance (Group) Corporation. Towards north, there is the Bank of China, the People's Insurance Company (Group) of China and China Insurance Regulatory Commission. Towards the west and along the 2ND ring road lies the Fuchengmen subway station which is conveniently a walking distance away. Taking inspiration from the design of the ancient Chinese coin - a square within a circle this abstract symbol is a key element in the construction of the building. The front of the building has an eco-space of thousands of square meters which is made up of greenery, fountains and sculptures, allowing much grandeur. Facing the 2ND ring road on financial street, this green pasture is one of a kind.
Given all these foreign companies own less than 50% of the joint ventures, don’t expect a data center to be built by these financials.