In the month of August 2013, the United States Securities and Exchanges Commission ("SEC") initiated a burglary investigation into JPMorgan's "princeling hiring" practices in Hong Kong, China's Special Administrative Region. The investment bank's Hong Kong business employed the daughter of a senior official of the state-owned China Railway Group ("CRG") in 2007, as well as the son of the chairman of state-owned China Everbright Group ("Everbright") in 2010.
JPMorgan Hiring Chinese Princelings Becomes a Royal Pain Case Study Solution
Months following the 2007 hiring, JPMorgan successfully procured the occupation of underwriting CRG's initial public offering ("IPO"). Likewise, although few business deals between JPMorgan and Everbright and its particular subsidiary companies were made before 2010, JPMorgan subsequently successfully procured several financial advisory jobs for the firm. The US Security Exchange Commission's following investigation put investment bank attempts to construct "guanxi" in China by hiring princelings in the spotlight.
PUBLICATION DATE: December 16, 2014 PRODUCT #: HK1053-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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