Shares in U.S. banking giant JPMorgan Chase (JPM) edged higher today as it ramped up its expansion plans in Asia off the back of surging Chinese growth.
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Hiring Spree
The bank said it would be hiring more corporate bankers in the Asia Pacific region with an aim of increasing headcount by a further 20% next year. It comes as part of a regional growth push, senior executives told Reuters.
The company has already increased its staffing levels in the corporate banking division by 20% as of July, double its initial target for 2025.
Oliver Brinkmann, co-head of global corporate banking in Asia Pacific, said: “We’re planning for something similar next year across the region.”
However, it did not say how many bankers would be hired.
The recruitment goals underscore JPMorgan’s push to expand its footprint in Asia Pacific, where it sees long-term growth driven by digital innovation, rising intra-Asia trade and demand from corporates in the region to go global. However, as seen in the above chart, it currently has a low exposure to the region.
No Naysayers
“It has come at a challenging time for some within the industry, and we think that is a great opportunity for us to expand,” Brinkmann said. “When those things happen, you know competition is going to come back strongly, so you need to take that opportunity. We think that’s the case for the next three to four years, and hence we’re going to accelerate our hiring.”
Brinkmann added that the push comes despite economists’ fears about China’s growth outlook. It has been hit by a prolonged property slump, declining consumer confidence and President Trump’s tariff strategy.
However, President Xi is trying to take corrective action showing more support for private businesses including tech giants to take on the U.S. in the AI race.
“The naysayers say China’s going to slow down and it’s going to be difficult. We don’t see that. Our China business is growing 25% year-on-year,” Brinkmann said.
Earlier this year, JPM chief Jamie Dimon said that the bank will continue to “deepen its engagement with China’s capital markets” and serve both domestic and multi-global firms looking to grow.
Is JPM a Good Stock to Buy Now?
On TipRanks, JPM has a Moderate Buy consensus based on 12 Buy, 6 Hold and 2 Sell ratings. Its highest price target is $350. JPM stock’s consensus price target is $307.71, implying a 2.39% upside.
