JPMorgan's Chinese Tech Sector Downgrade Proved Costly for Them - Read How - JPMorgan Chase (NYSE:JPM), Kingsoft Cloud Holdings (NASDAQ:KC)

JPMorgan Chase & Co JPM lost its position as the most senior underwriter for Kingsoft Cloud Holdings Ltd's KC Hong Kong stock offering, Bloomberg reports.
The size of the offering in Hong Kong is relatively small, amounting to ~$100 million.
The change came after one of JPMorgan's analysts cut the share-price target for the Chinese technology company by half.
Also Read: JPMorgan Downgrades Alibaba and Other China Tech Stocks Following Selloff; Calls It "Uninvestable" For Next 6-12 Months
JPMorgan bankers have explained to Kingsoft Cloud that general market conditions rather than fundamentals triggered the downgrade.
JPMorgan is still a sponsor of the offering but ranks behind UBS Group AG UBS and China International Capital Corp.
The demotion could cut fees for JPMorgan.
JPMorgan was among a slew of global banks seeking to expand in China when the nation's stock market plunged on concerns over economic slowdown, strict Covid Zero policies, and a government crackdown on tech companies.
Price Action: JPM shares closed higher by 2.09% at $131.15 on Tuesday.