The Securities and Exchange Commission of U.S, opened a bribery case against JP Morgan, who found to be suspect in princeling hiring. In 2007, the company’s subsidiary in Hong Kong, China’s Special Administrative Region, hired the daughter of a senior official of the China Railway Group (CRG) owned by the state and eventually few months after this hiring, JP Morgan became the underwriter for CRG’s initial public offering (IPO).
By 2010, the company found in another princeling hiring, when they appointed the son of the chairman of China Everbright Group, owned by the Chinese state. As few business deals were already made in 2010 between JPMorgan and Everbright and its subsidiaries, so after this hiring JPMorgan ultimately secured the job of financial advisor for the company. The subsequent investigation by US put JPMorgan’s efforts to build “guanxi” in the specific region through princelings hiring.
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