US regulators are investigating the hiring practices of JPMorgan Chase in Hong Kong, in a move that could cast an unflattering light on the relationships between Wall Street banks and the sons and daughters of Chinese government officials.
JPMorgan disclosed in a recent regulatory filing that it has received a request from the US Securities and Exchange Commission “seeking information and documents relating to, among other matters, the firm’s employment of certain former employees in Hong Kong and its business relationships with certain clients”.
A person familiar with the investigation said that it involves the bank’s hiring of Tang Xiaoning, son of a former Chinese banking regulator who is now chairman of the state-owned China Everbright Group, and Zhang Xixi, the daughter of a Chinese railway official.