US authorities have launched a probe into claims that investment bank JP Morgan hired children of influential Chinese officials to gain business.
It is claimed that the bank hired the son of a one-time bank regulator, now head of investment firm China Everbright.
According to the BBC, China Everbright and JP Morgan went on to complete a series of deals together.
JP Morgan this month said it had had a request for details of the matter from US watchdog the Securities and Exchange Commission (SEC).
It is also claimed that the Hong Kong office of the bank had employed the daughter of a Chinese railway official as The China Railway Group chose JPMorgan to advise it on a public flotation in 2007 when it raised five billion dollars, the report said.
The official was later arrested in connection with a bribery scandal.
