JP Morgan selects HSBC, Stan Chart to run $500 billion storage business in Hong Kong, Taiwan By Reuters
© Reuters. FILE PHOTO: The HSBC logo is seen at its headquarters in Hong Kong’s central financial district, China, Aug. 4, 2020. REUTERS/Tyrone Siu/File Photo
Selena Lee
HONG KONG (Reuters) – JPMorgan Chase (NYSE:) has selected HSBC and Standard Chartered (OTC:) as its operators of custody operations in Hong Kong and Taiwan with more than $500 billion in assets, a spokesperson for the U.S. bank said.
Reuters reported in December that JPMorgan, the world’s third-largest global custodian, was planning to outsource its local custodial operations in Hong Kong and Taiwan, joining Citigroup, HSBC and StanChart in a proxy race.
The Wall Street bank decided to outsource local custodianship in Hong Kong to HSBC and Taiwan to StanChart, a spokeswoman said. Financial details of the deal were not immediately known.
Total assets under management in the two North Asian markets reached about $520 billion in December, Reuters reported at the time, citing people familiar with the matter.
JPMorgan aims to complete the transition to both banks by the end of this year, according to two sources with knowledge of the matter. They declined to give their names because they are not authorized to speak to the media.
HSBC Global Head of Securities Services Fiona Horsewill said HSBC looked forward to JPMorgan’s appointment in its home market of Hong Kong and deepening its relationships in this area.
Margaret Harwood-Jones, Global Head of Financial and Securities Services at StanChart, said she was delighted to be expanding her relationship with JPMorgan through this appointment in the important Asian market.
JPMorgan’s appointment was first reported Wednesday by Global Custodian.
Asset managers keep investors’ securities safe and safe from loss. We also manage transactions and payments to ensure customer accounts comply with tax and other regulations.
JPMorgan provides both global and local custody services to clients in Hong Kong and Taiwan, but decided to pull out at the local level as declining assets led to higher cost-to-earnings ratios, two sources said in December.
In 2020, the bank ceased providing local custody services for external customers in Australia, retaining one of the largest global custody services operations in the market.
