JP Morgan drops second China IPO amid 'princeling' probe
HONG KONG (IFR/Reuters) - JP Morgan has ceased working on the proposed US$1 billion (S$128 billion) initial public offering (IPO) of Jinzhou-based Tianhe Chemicals amid an ongoing investigation into its hiring practices.
The bank walked away after managers raised concerns over the employment of Ms Joyce Wei, the daughter of Tianhe chairman Qi Wei, according to two sources with direct knowledge of the matter.
Ms Wei worked in the bank's corporate finance group and has recently left for a European investment bank, the sources said.
JP Morgan had been discussing an overseas listing with privately-owned Tianhe since at least 2011, when IFR first reported that the chemical company planned to list in London. It is not clear whether Tianhe signed any formal letter of engagement before or after Wei joined the bank.