JPMorgan has recently gained the approval together with an earned licensure to underwrite China’s corporate bonds in its interbank bond market – a first in the history as the company was the first U.S Bank to do so.

China is the third largest bond market in the world with 43.7 trillion yuan, which is 6.3 trillion in dollar value, outstanding just as the last year concluded. China also has over 90% as its interbank bond market financial status, as cited by China Central Depository & Clearing in a statement.

As mentioned, JPMorgan is the first U.S. bank to receive the license from the National Association of Financial Institutional Investors or NAMFII and is quite fitting because it is the largest bank in America. That is according to the company in a statement on Monday.  

Chinese President Xi Jinping has recently planned to speed up the economic development of his country. In measured phases as his first action, the president is to acquire admittance to China’s debt markets, while last month; he voiced out his thoughts against protectionism as he disproved policies promoted by Donald Trump, America’s current president. The Chinese local bond market is still controlled by the public-sector loaners today since its creation years ago.

According to reports, the total corporate bonds issued in China alone have surged 68 percent last year to 23.4 trillion Yuan.

JPMorgan was approved of a business license to work on a totally-owned fund management business in China just last year’s September. The license allows the company to set up an office in Shanghai in a free-trade zone.

Technical Analysis


JPMorgan on the Friday of last week’s sessions opened with 86.15 and concluded at 87.18. The stock had a high of 87.29 and a low of 85.85. JPMorgan rose highly from the recent up of Thursday’s which opened at 84.56 and a high of 84.88. RSI is at 59.53.

Other indicators such as the Coppock curve displayed a rise from JPMorgan. The stock was at -1.62 on Thursday’s session and went up to -0.11. JPMorgan is still below 0 so a hold on buy is advisable. However, this is JPMorgan’s fourth rise in the indicator and it is possible that it may breakthrough 0 any time soon now.

TRIX indicator can support the hold on buy advice on JPMorgan’s stock. The indicator was at 12.83 in the last session and it may be far from going negative, but the 10 day streak performance can indicate that it can go further down.

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