JPMorgan Asset Management Takes Short Position Against Canal Plus Weeks After Helping With London Float

In a surprising turn of events, JPMorgan Chase’s asset management division has begun betting against Canal+ shares mere weeks after the bank’s involvement in the media giant’s £2.9 billion London listing. The development raises questions about market confidence in the French television and film production company’s UK market debut.

The banking giant’s position comes as Canal+ shares have experienced significant downward pressure since their December listing. Initially priced at 290p per share, the stock has tumbled to 190p, marking a concerning trajectory for the Paddington films producer.

JPMorgan Asset Management has established a 0.51 per cent short position in Canal+, making it the first investor to cross the Financial Conduct Authority’s 0.5 per cent disclosure threshold. The move involves borrowing shares to sell them, with the intention of repurchasing at a lower price to profit from the decline.

While JPMorgan’s asset management arm operates independently from its investment banking division, which earned fees from the Canal+ listing, the conflicting positions within the same organisation have sparked debate within the City of London’s financial community.

The struggling performance of Canal+ shares adds to mounting concerns about London’s viability as a leading financial centre. The UK market has witnessed a sharp decline in new listings since 2021, alongside the departure of major companies like Flutter Entertainment and CRH to New York’s exchanges.

Despite the Chancellor Rachel Reeves initially hailing the Canal+ listing as a “vote of confidence” in British markets, the subsequent share price decline and JPMorgan’s short position paint a less optimistic picture for London’s financial future. The situation emerges as regulators and government officials work to enhance the UK’s attractiveness for public listings through reformed market rules.