JP Morgan has broken off talks with Huaan Fund Management on creating a joint venture to distribute mutual funds in China. The firm announced the news yesterday, but gave no explanation for why the discussions failed. Just last week Invesco finalized a similar deal with Great Wall Securities to offer funds in the Chinese market.

The American bank had reportedly been negotiating to purchase an equity stake in Huaan through its JF Asset Management unit. Huaan claims roughly $1.5 billion in assets under management, giving it a 10 percent share of the Chinese market.

JP Morgan told Reuters that it is still interested in pursuing opportunities in China. Presumably, it would need to find a new Chinese partner for the effort. A spokesperson confirmed to the news service that JP Morgan is "still holding dialogues with Chinese counterparts."

"We're extremely interested in pursuing asset management business in China. That's always been the case," Reuters quotes the spokesperson as saying.

Among the firms trying to put together products for the Chinese market are:

ING Groep NV

Societe Generale

Invesco

Allianz AG  

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