--FILE--A Chinese employee works at a branch of JP Morgan in Suzhou city, east Chinas Jiangsu province, 21 July 2012.
J.P. Morgan Chase & Co. has withdrawn from underwriting China Everbright Bank Co.s US$2 billion initial public offering in Hong Kong, people with direct knowledge of the deal said Tuesday (19 November 2013). The people declined to comment on why the Wall Street bank decided to pull out from the deal. Underwriters rarely withdraw from a deal, and less so weeks before order-taking starts. J.P. Morgans voluntary exit from the IPO comes as it grapples with several investigations by U.S. regulatorsªincluding the Securities and Exchange Commission and the Justice Departmentªover its alleged hiring of bankers related to Chinese officials. One of the hires U.S. regulators have looked at is Tang Xiaoning, son of China Everbright Groups chairman, and Zhang Xixi, daughter of a Chinese railway official. Regulators are probing how their employment may have helped the U.S. bank win deals from Everbright and state-controlled China Railway Group, a person familiar the matter said in August.