Sources Say JPMorgan Will Outsource Its Custody Business in Hong Kong and Taiwan for $500 Billion

According to two people with knowledge of the situation, JPMorgan Chase plans to outsource the management of its local custody business in Taiwan and Hong Kong, with Citigroup, HSBC, and Standard Chartered vying for the contract.

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When customers access particular markets, local custody businesses handle the bookkeeping and transactions.

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On the other hand, global custody maintains connections with clients and uses a wide network to manage cross-border investments.

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JPMorgan serves as a local custodian for client assets under custody (AUC) totaling over $520 billion in those two North Asian regions.

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In those two markets, the bank will keep offering worldwide custody services.

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According to the third source, the bank plans to finish switching over to a different bank in Taiwan and Hong Kong by the end of the next year.

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