UPDATE 1-JPMorgan withdraws from $2 bln China Everbright Bank HK listing-source

Tuesday, 19 Nov 2013 | 3:56 AM ET


HONG KONG, Nov 19 (Reuters) - JPMorgan Chase & Co has withdrawn from the syndicate of banks working on a $2 billion listing by China Everbright Bank Co in Hong Kong, a person familiar with the matter told Reuters.

JPMorgan's withdrawal comes as it faces a number of investigations by U.S. regulators, including a probe into its hiring practices in China. U.S. authorities are investigating whether JPMorgan improperly gave jobs to well connected people in Asia to win business.

JPMorgan at one point hired Tang Xiaoning, the son of Tang Shuangning, chairman of state-controlled financial conglomerate China Everbright Group, and a former banking regulator, The New York Times reported in August.

After the younger Tang joined JPMorgan, the bank won several important assignments from Everbright, including advising a subsidiary on a stock offering, the newspaper reported.

The probe has spurred several JPMorgan executives to hire lawyers in the United States, a source told Reuters last week.

Shanghai-listed China Everbright Bank said in March it would try again to issue up to 12 billion shares in a Hong Kong listing, after shelving similar plans in 2011 and again in 2012.

JPMorgan declined to comment.

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