US probe highlights hiring of Chinese 'princelings'
SHANGHAI (AFP) - Foreign investment banks in China were taken by surprise by a US bribery probe into JPMorgan's hiring of Chinese "princelings" - in part because the practice is so widespread.
The anti-bribery unit of the Securities and Exchange Commission (SEC) is reportedly investigating claims the company hired at least two children of powerful Chinese officials to help win investment banking business in the hugely lucrative market.
Now industry insiders say other firms will be reassessing the practice of recruiting "princelings", as rich young Chinese with powerful family connections are known.
JPMorgan said in a statement it was "fully cooperating" with regulators and had publicly disclosed the issue in a filing to the SEC. A spokeswoman declined further comment.