JP Morgan allegedly paid $80,000 a month to Wen Jiabao's daughter to promote its standing in China, a media report has said. However, the bank has not been accused of any wrong-doing and is co-operating with US authorities.

JP Morgan allegedly paid $80,000 a month to Wen Jiabao's
daughter to promote its standing in China, the Sydney Morning Herald reported late last week. However, its report
stated that the US
bank has not been accused of any wrong-doing and is co-operating with US
authorities on such matters.

JP Morgan executives in Hong Kong and some other major firms
knew that Lily Change was not the person’s real name, but an alias for Wen
Ruchun, the only daughter of Wen Jiabao, who at the time was China’s prime
minister, with oversight of the economy and its financial institutions, the
paper said.

The bank’s link to Ms Wen - which came during a time when
the bank also invested in companies tied to the Wen family - has not been
previously reported. The report said a variety of evidence shows that the relationship
pointed to a broader strategy for accumulating influence in China: put the
relatives of the nation’s ruling elite on the payroll.

When asked about this story by WealthBriefingAsia, JP Morgan declined to comment. It has also declined
comment when previously asked about allegations that it has sought such
influence.

The Australian newspaper said US authorities are
scrutinising JP Morgan’s ties to Ms Wen, whose alias was government approved,
as part of a wider bribery investigation into whether the bank swapped
contracts and jobs for business deals with state-owned Chinese companies. The
bank, which is cooperating with the inquiries and conducting its own internal
review, has not been accused of any wrongdoing, the bank said.