Morgan Stanley set to buy larger stakes in China securities, funds joint ventures
- China Fortune Securities plans to sell stakes in Morgan Stanley Huaxin joint ventures
- Morgan Stanley is the latest Wall Street bank to seek further control of Chinese joint ventures
Morgan Stanley is set to buy stakes in its Chinese securities and mutual fund joint ventures for 958.6 million yuan (US$150 million), giving it greater control of those companies as the country’s financial sector further opens up to foreign lenders.
The sale would give Morgan Stanley a 90 per cent stake in the securities joint venture, with the remaining 10 per cent held by China Fortune. The Wall Street bank would own an 85 per cent stake in the fund company following the sale.
The share sale is subject to regulatory approval.
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Morgan Stanley has had a presence in China since 1993 and received approval to establish the securities joint venture in December 2010.
“We are excited by opportunities to significantly expand our onshore securities and asset management businesses, which further strengthen our position to provide the best advice and services to our clients,” a Morgan Stanley spokesman said.