JP Morgan's China play

The private equity arm of JP Morgan Chase, One Equity Partners, made a $69.6 million bet last week on China Medicine Corp. (OTCBB:CHME). The company markets traditional herbal medicines, nutraceuticals and drugs in China, including iopamidol, an iodine-based contrast agent used in CNS imaging.

OEP bought 4 million shares at $3 per share, a 17% discount to the Wednesday close of $3.62, the day before the announcement. OEP also received 1.92 million of redeemable convertible shares at $30 per share. Each preferred share is convertible to 10 common shares...