Beijing: JP Morgan and Industrial and Commercial Bank of China will cooperate in investment banking, the Chinese commercial bank, said on Friday.
The pair would target advisory services on mergers and acquisitions, private equity and securitisation, Industrial and Commercial Bank (ICBC) said in a statement, referring to an agreement signed last week.
The Chinese bank is itself preparing for an initial public offering of its shares.
The two banks would also work together in such areas as arranging syndicated loans and sharing business information, Industrial and Commercial Bank said.
The statement says that it had set up a investment banking unit in 2002 to develop an advisory business for mergers and acquisitions, syndicated loans and securitisation, although the Chinese law still requires banks to have separate subsidiaries for banking, securities and insurance services.
Analysts say Industrial and Commercial Bank's eventual listing, planned within a year, should attract at least as much interest as that of China Construction Bank Corp., which raised $8 billion this month.
Industrial and Commercial Bank's has signed a non-binding agreement to sell a 10 per cent stake to a consortium of Goldman Sachs's private equity arm, European insurer Allianz A G and American Express Co. for more than $3 billion.
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