UBS, Morgan Stanley plan China expansion
The two banks intend to increase stakes in their mainland securities joint ventures
Morgan Stanley and UBS plan to increase their stakes in their mainland securities joint ventures as they commit to expanding their operations in China.
Subject to regulatory approval, UBS and Morgan Stanley intend to raise their stakes in UBS Securities and Morgan Stanley Huaxin Securities, respectively, to 49 per cent, according to media reports first published in the Wall Street Journal on Monday and verified by the Post.
Spokespeople for both banks declined to comment.
UBS currently holds just under 25 per cent of UBS Securities, which was registered in 2006, and established after mainland brokerage Beijing Securities fell into difficulties. UBS contributed to the bailout of the troubled firm, and the newly renamed UBS Securities became the first foreign-invested, fully licensed securities firm in China. UBS currently holds the second largest stake in the brokerage behind Beijing Guoxiang Property Management, which owns one third.
Morgan Stanley owns one third of Morgan Stanley Huaxin Securities, with the rest owned by Huaxin Securities. The joint venture was established in 2011, and was the US bank’s second China joint venture after it sold its stake in CICC in 2010.
