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.