Odeon Capital Group doubts JPMorgan has a bright future in China

Odeon Capital analysts told investors in a note Monday that they doubt JPMorgan (NYSE:) has a bright future in China over the longer term.

In their note, the analysts, who have a Buy rating and $152 price target on JPM shares, stated that the time for Western investment banks to make money in China is long past.

They explained that China previously needed dollars to fulfill its ambition to become an internationally powerful financial country, but over time “meaningful trade surpluses built up record amounts of dollars at the People’s Bank of China.”

In addition, they note that China extracted enough information to allow its biggest banks to function without the aid of American and other bankers and now has what it needed.

“It did not need the Americans. So, many American firms are now shrinking their positions in China meaningfully,” wrote the analysts. “To me this was demonstrated forcefully when Jamie Dimon and Elon Musk went to China last week.”

“It is doubtful, in my view, that JPMorgan has a bright future in China over the longer term. Mr. Musk clearly does,” they concluded.