J.P. Morgan can trace its history in China back to the 1920s when we provided wholesale banking services to a variety of foreign and domestic companies as well as government agencies. Today, J.P. Morgan is one of the few fully integrated foreign banks in China with leadership positions across investment banking, risk management, foreign exchange, bond underwriting, cash management, trade finance and private equity.

In the past few years our growth has been rapid, with revenues more than doubling and onshore staff increasing to nearly 300 (as of May 2008). We offer the full spectrum of wholesale and commercial banking products through branches in Beijing, Shanghai and Tianjin and representative offices in Beijing and Shanghai.

With the firm's strategic focus on China, over a third of J.P. Morgan's employees in Asia are based in the Greater China Region. In China, J.P. Morgan offers a similar service platform as in the rest of Asia, with the broadest range of products; from corporate finance and advisory to corporate banking services.

J.P. Morgan has created one of the very few integrated investment banking operations in China and this operates through our two representative offices, providing a complete range of capital raising, merger and acquisition (M&A) and strategic advisory services. We are the market leader in China-related M&A and the premier underwriter of sovereign and corporate debt issues. We have extensive and rapidly growing experience in underwriting equity for major Chinese state-owned corporations and private enterprises. J.P. Morgan also actively invests in the domestic stock markets through its licence as a Qualified Institutional Investor (QFII) and we are the largest foreign broker of B-shares with seats on the Shanghai and Shenzhen stock exchanges.

On July 23, 2007 - JPMorgan Chase Bank received approval from the China Banking Regulatory Commission ('CBRC') to establish a locally incorporated bank in China. This is the first time that the CBRC has granted a foreign bank approval to incorporate in Beijing. Headquartered in Beijing, the bank will serve J.P. Morgan's major banking and financial operations throughout the mainland.

The incorporation of JPMorgan Chase Bank (China) Company Limited is a significant milestone in our history in China. This achievement will allow us to take more advantage of China's wider economic reforms and expansion, clearing the way for development of our existing businesses and the creation of a broader geographic reach.

JPMorgan Chase Bank (China) Company Limited will have one branch in Beijing, Tianjin and Shanghai. The Beijing Branch of JPMorgan Chase Bank, N.A., will remain in existence and will be specifically engaged in foreign exchange wholesale business.
Significant deal wins

Capital market transactions:

July 2006 - J.P. Morgan acted as Sole Sponsor, Joint Global Coordinator and Joint Bookrunner on Greentown China's $343 million IPO. The deal, the third-largest IPO for a Chinese property developer ever, further solidifies J.P. Morgan's leading position in the Asia real estate market, as well as our franchise in China. J.P. Morgan now ranks #1 in China real estate equity and equity-linked offerings since 2004.

May 2006 - J.P. Morgan acted as a Joint Bookrunner and successfully priced the US$602 million Aluminum Corporation of China Limited ('Chalco') accelerated bookbuilt H share placement. The deal is the largest metal and mining follow on offering in the Asia ex-Japan region ever.

April 2006 - J.P. Morgan acted as Joint Global Coordinator and Bookrunner and successfully priced a US$1,983 million accelerated equity offering for CNOOC Ltd, the largest offshore oil and gas exploration and production company in China. The deal was well-timed to take advantage of the surging oil prices and strong investor interests in China. The placement is the largest accelerated bookbuilt offering in Asia (excluding Japan) so far this year. This equity placement is the second capital market transaction we have completed for CNOOC and solidifies our relationship with this premium client.

2005 - Joint bookrunner for China COSCO's US$1.2bn IPO issuance.
2004 - Joint Bookrunner for the US$1bn convertible bond offering.
2003 - Joint bookrunner for the People's Republic of China's US$1bn bond issuance.

M&A transactions:

Advised China Pacific Property Insurance on the US$277m sale of a 24.9% stake to Insurance Australia Group.

Advised Shineway Industry Group on the US$272m sale of its 100% stake to a consortium led by Goldman Sachs.

Advised China International Financial Holdings on the US$710m acquisition of 19.9% of CITIC Bank.

Advised FedEx on its US$400m acquisition of a 50% stake in its China JV.

Advised Xugong Construction Machinery Group on its US$375m sale of a 85% stake to the Carlyle Group.

Advised PCCW on the US$1bn sale of a 20% stake to China Netcom Group.

Advised Ting Hsin on the US$530m sale of 50% of its hypermarket chain Hymall to Tesco.

Advised Tingyi on US$950m beverage partnership with Asahi and Itochu through the sale of 50% of its beverage subsidiaries.