JPMorgan Chase is observing signs of economic improvement in China that are expected to boost the bank’s business in the region, according to Mary Erdoes, CEO of asset and wealth management. U.S. companies are evaluating their prospects in China as the economy recovers unevenly amidst worsening relations between the two nations. The bank has faced challenges in sluggish capital markets, but investors are closely monitoring the impact of government support measures on the economy.
“The business environment in China has been challenging in recent years, but sentiment began turning more bullish in March,” Erdoes said in an interview. She highlighted positive indicators such as recovering consumer spending and government efforts to address real estate issues. Erdoes, identified as a potential successor to CEO Jamie Dimon, visited China last month for the annual Global China summit hosted by JPMorgan in Shanghai, which saw increased attendance from over 3,000 delegates from 33 countries.
Long-term investors recognize China’s importance, and JPMorgan continues to expand its business there. The bank became the first foreign owner of a brokerage in China in 2021, and its asset management unit employs 400 people. Despite this, JPMorgan has reduced its workforce in the country this year. Dimon recently mentioned that parts of its investment banking business in China had significantly declined.
Erdoes, who manages more than $5 trillion in assets, has also been active in supporting Ukraine. In September, she convened a meeting with Ukrainian President Volodymyr Zelenskiy and U.S. billionaires in New York to discuss investment opportunities in Ukraine. The bank has advised Zelenskiy on economic policies and growth, and Erdoes organized further discussions in Davos, Switzerland, to explore aid and investment opportunities post-conflict.
“We are working on development issues critical to their rebuilding efforts and exploring ways to connect clients to business there once a peaceful resolution is hopefully reached,” Erdoes said. The World Bank estimates that Ukraine may need nearly $500 billion to rebuild its economy. Erdoes has shown personal commitment to the cause, having traveled with her family to Poland to volunteer at an orphanage for Ukrainian children in 2022. Her family has raised over $92,000 for charities supporting Ukrainian families.
As Dimon plans to step down in less than five years, Erdoes is among the contenders for the top job at JPMorgan, alongside Jennifer Piepszak, Troy Rohrbaugh, and Marianne Lake. If JPMorgan appoints a woman as CEO, she would follow Jane Fraser of Citigroup as the second female head of a major Wall Street bank. Erdoes emphasized the long-term effort in building a diverse workplace, noting, “Building a diverse workplace is not something that you do in a day. We have been on this journey for multiple decades.”
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