JPMorgan Notes 'Slight Negative' For Apple In China

In a report published Wednesday, JPMorgan analyst Rod Hall wrote that

is facing an "uphill battle" in China as talks with UnionPay appear to be stalling. Hall noted that China's central bank, UnionPay bank-card service and

are "standing up" to Apple's efforts in bringing Apple Pay to Chinese consumers. Hall cited a People's Bank of China official who said "Apple is seeking to cooperate with Chinese financial institutions" but the company has not yet "acknowledged regulators" and "it's unclear whether the product meets the government's requirements" for commercial use. Hall also added that sources with knowledge of the situation suggested that talks aimed at an agreement in bringing Apple Pay have "stalled," leading the analyst to wonder if Apple Pay will ever make its way in to the country. "We doubt that Apple has ignored regulators in China," Hall wrote. "However, given what we believe the Chinese government's continued efforts to advantage local competitors, we wonder if Apple Pay will be allowed." Hall added that this development represents a "slight negative impact" for shares.