JP Morgan Chase & Co. has pulled out of a US$1 billion initial public offering of a Chinese chemical firm and won’t seek a role in the IPO of a state-owned train maker, as the bank avoids deals that could come under scrutiny from US investigators probing its hiring practices in China, the Wall Street Journal reported Tuesday. In November, JP Morgan pulled out as an underwriter in the IPO of China Everbright Bank. Now the US bank has stepped back from two more deals, including Tianhe Chemicals which is eyeing a US$1 billion listing in Hong Kong this year, the report said. JP Morgan last month decided to walk away from Tianhe deal because Tianhe Chairman Qi Wei’s daughter, Joyce Wei, had worked for JP Morgan, the report said. The bank wanted to avoid being accused of getting the business through her connections, sources were quoted as saying.
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