(Bloomberg) -- JPMorgan Chase & Co. will continue hiring in China for its asset management business as it targets growth in the world’s second-largest economy.

“China’s mutual fund industry remains an irreplaceable growth market for global asset managers,” Desiree Wang, JPMorgan Asset Management China chief executive officer, said in an interview on Friday. “It offers a great certainty of growth.”

JPMAM China kicked off 2024 with an ETF tracking the new CSI A50 index, raising 2 billion yuan ($278 million) in less than 10 days. It was the only global asset manager among 10 such companies that created similar products. The fund will be listed on Tuesday.

Wang said the company will keep hiring in China, focusing on investment, research and distribution talent. “The company has no major downsizing plan for the asset management business” in the country, Wang said. JPMAM China plans to keep its headcount largely the same throughout the year. 

Wall Street banks are navigating an increasingly challenging terrain, as China tightens scrutiny over its financial sector. Despite the country’s promises of opening up its asset management and pension sector for foreign firms, many have found it hard to increase market share, while others including Vanguard Group Inc. have retreated.

Read More: BlackRock, Fidelity Lose Out in $1 Trillion China Pension Market

Other asset managers have also dialed back. Matthews International Capital Management LLC is closing it Shanghai office, the company said on Friday. Earlier this month, the chief investment officer of Goldman Sachs Group Inc.’s wealth management business said that “one should not invest in China.” 

JPMorgan Chief Executive Officer Jamie Dimon said in January that calculating the potential upside for US firms investing in China has became more complicated, even though the country has been “very consistent” in opening up to financial-services companies. 

The lender has invested significant resources in the asset management sector in China. It gained full control of its China mutual fund joint venture last year, after buying out local partners to expand in the 27 trillion yuan market. It also bought a stake in China Merchants Bank Co.’s asset management subsidiary for about 2.67 billion yuan. 

Based in Shanghai, JPMAM China has been operating in China for 20 years. Originally known as China International Fund Management, the company changed its name last year. It offers more than 90 mutual fund products covering equities, fixed income and outbound investments via the Qualified Domestic Institutional Investor program. 

JPMAM China serves 64 million retail and institutional clients in the country and oversees about 160 billion yuan. 

Read More: JPMorgan, StanChart Approved for Fully-Owned China Ventures

Wang says that China’s mutual fund sector will continue to grow as more people shift investments into assets beyond property. Only 10% of household wealth is in equity and mutual funds in China, compared with about 33% in the US, she said.  

The company is among a number of global asset managers trying to win a bigger slice of the market. Nine foreign companies have won approval for wholly-owned mutual fund operations in China, according data compiled by Oliver Wyman. 

Meanwhile, at least five foreign companies have set up collaborations with local partners to offer wealth management services approved by the China Banking and Insurance Regulatory Commission, now known as National Administration of Financial Regulation.

Among them, Amundi SA in December 2019 became the first foreign firm to win a 55% majority stake in a wealth management services firm. The joint venture with Bank of China Wealth Management turned a profit in 2022, marking a milestone for Europe’s largest asset manager. 

BlackRock Inc. and Temasek Holdings Pte have also started a wealth-management business in China along with China Construction Bank Corp. Schroders has set up a joint venture with Bank of Communications Co.

--With assistance from Joanne Wong and Zhang Dingmin.

(Updates with comments from Goldman, Matthews Capital’s retreat)

©2024 Bloomberg L.P.