US Financial Firms Accelerate China Expansion: JPMorgan Asset Management Says Chinese Assets a 'Must-Have'

U.S. financial institutions are accelerating their expansion into the Chinese market. From the intensive rollout of investment banking projects to the continued growth of public fund and asset management operations, and the rapid development of wealth management businesses, an increasing number of U.S. firms are participating in China's capital markets with greater depth and breadth, continuously extending their business reach.

At the same time, U.S. institutions are gaining clearer visibility on the long-term potential of the Chinese market. Whether it is a reassessment of the allocation value of Chinese assets or sustained attention to new economy sectors such as AI and advanced manufacturing, multiple U.S. institutions have signaled a strong commitment to deepening their presence in China and capturing structural opportunities.

Active Participation in Hard-Tech IPOs

"The Hong Kong stock market is transitioning from a traditional comprehensive market to a new type of international pricing center focused on hard technology and new productive forces," said Qian Jing, CEO of Morgan Stanley Securities, in an interview with Securities Times.

Hong Kong's IPO market has been active this year. As of September 22, 110 companies had gone public in Hong Kong year-to-date, raising a total of HK$370.532 billion — an increase of more than 150% compared to the same period last year.

U.S. investment banks have played a significant role in this surge. This year, U.S. brokerages have been actively involved in overseas listings and refinancing by Chinese companies, with their presence evident in several landmark deals. For example:

• Morgan Stanley assisted Zhongji Innolight (HK:3308) in completing a HK$61.42 billion Hong Kong IPO and helped Montage Technology (HK:6809) with its Hong Kong listing.
• JPMorgan supported Shenghong Technology (HK:2476), Lingyi iTech (HK:1688), Momenta, and Lead Intelligent (HK:0470) in their Hong Kong IPOs.
• Goldman Sachs has also facilitated Hong Kong IPOs for companies including MiniMax, Anker Innovations (HK:0668), and Zhongji Innolight (HK:3308).

Qian Jing noted that the new economy industrial cluster, represented by the global AI super cycle combined with the life sciences revolution, is the core driver behind the strong IPO activity in Hong Kong. The convergence of this industrial upgrade and the technology cycle has provided a rich and high-quality pipeline of IPO candidates.

Huang Peihao, Head of Equity Capital Markets for Asia Pacific at JPMorgan, stated that Hong Kong IPO subscriptions have been robust this year, with overall subscription multiples very high. Interest from international long-only funds in Chinese IPO projects continues to rise, with a notable increase in the proportion of U.S. long-term funds acting as cornerstone investors. She pointed out that the participation of these funds has a significant leading effect and drives subscription demand.

Behind the密集 rollout of projects is a collective surge in performance by U.S. brokerages in China. Morgan Stanley Securities achieved net underwriting fee income of RMB 312 million in 2025, leading among foreign institutions. In terms of full-year 2025 net profit, Goldman Sachs (China) Securities led with a net profit attributable to shareholders of RMB 1.461 billion, a year-on-year increase of 194%. JPMorgan Securities posted a net profit of RMB 984 million, up 280% year-on-year, marking its fifth consecutive year of profitability.

Expanding Diverse Product Portfolios

In the public fund sector, U.S. institutions continue to advance their operations in China. According to Wind data, as of the end of the second quarter of 2026, the fund management scales of JPMorgan Asset Management, Morgan Stanley Fund, Neuberger Berman Fund, BlackRock Fund, and AllianceBernstein Fund stood at approximately RMB 243.4 billion, RMB 45.6 billion, RMB 27.1 billion, RMB 12 billion, and RMB 600 million, respectively.

The five U.S. public fund firms entered the Chinese market through different paths. JPMorgan Asset Management and Morgan Stanley Fund both transitioned from Sino-foreign joint venture fund companies to wholly foreign-owned enterprises. BlackRock Fund, Neuberger Berman Fund, and AllianceBernstein Fund were established as new wholly foreign-owned public fund companies, commencing operations in 2021, 2022, and 2024, respectively.

As their operations in China deepen, the product offerings of U.S. public fund firms are becoming increasingly diverse. Overall, their product coverage now spans active equity, fixed income, quantitative and index strategies, multi-asset, and fund-of-funds (FOF), with further expansion into cross-border investment, systematic investing, index enhancement, and thematic investing.

For instance:

• JPMorgan Asset Management has established six major investment business lines, including active equity and fixed income, and has launched eight Hong Kong mutual recognition funds covering Asian equities and bonds, international bonds, and other multi-asset classes, providing cross-border investment tools for over 1 million domestic investors.
• BlackRock Fund, which initially focused on equity investing, has expanded into fixed income, multi-asset, and systematic investing. In September of this year, it received QDII qualification, becoming the first newly established wholly foreign-owned public fund to obtain this license.
• Neuberger Berman Fund is also continuously enriching its product lineup, exploring differentiated development paths through Hong Kong Stock Connect technology-themed funds and index enhancement products.

"China is the world's second-largest capital market. In the view of JPMorgan Asset Management, China has never been an option — it is a necessity," said Wang Qionghui, CEO of JPMorgan Asset Management China. As of the end of June, the company had over 100 investment professionals in China, forming part of JPMorgan Asset Management's global team of more than 1,300 investment professionals.

Yu Beihua, General Manager of BlackRock Fund, stated: "Over the past five years, we have remained rooted in the Chinese market, continuously building local investment capabilities and deeply integrating BlackRock's global experience with the realities of the Chinese market." She added that the firm will further leverage the synergies between its global platform and local team to offer Chinese investors more diversified investment choices and asset allocation solutions.

Positive Outlook on the Allocation Value of Chinese Assets

From a global asset allocation perspective, U.S. institutions continue to focus on the allocation value of Chinese assets. BlackRock noted that it currently invests in China on behalf of global clients, with a total investment exposure to China exceeding US$200 billion. The low correlation between Chinese assets and global markets makes them an indispensable component of global portfolios.

According to analysis by Goldman Sachs' China equity strategy team, based on the first-half 2026 earnings reports of approximately 6,800 listed Chinese companies (covering A-shares, H-shares, and ADRs), the overall earnings growth of Chinese listed companies accelerated to 24% year-on-year in the second quarter of 2026 — the highest quarterly growth rate in five years. Some 45% of MSCI China Index constituents exceeded market expectations.

JPMorgan Asset Management also holds a relatively positive view on Chinese equity assets. Fund manager Du Meng of JPMorgan Asset Management believes that, on a cross-border comparison, China's stability is particularly significant. RMB-denominated Chinese assets, especially equities, are likely to experience substantial revaluation opportunities amid the transition from the old to the new global order. Beyond AI, investment opportunities also exist in sectors such as innovative drugs, non-ferrous metals, and new and traditional energy.

From a longer-term industrial trend perspective, Neuberger Berman Fund is focusing on AI, energy and power, and advanced manufacturing. As the AI industry chain extends from computing power investment to application deployment and physical infrastructure, China's competitive advantages in power equipment, energy storage, power grids, temperature control, and advanced manufacturing are creating new investment opportunities for related assets.