fbpx

Type to search

Morgan Stanley to Boost Stake in China Brokerage to 94%

Morgan Stanley is set to increase its stake in its brokerage joint venture in China by 4% to 94%, an exchange filing showed on Wednesday, putting it on track to take full ownership of the business.


Morgan Stanley's China securities business head proposed a board to allow offshore-listed Chinese and foreign firms to list in China.
The corporate logo of financial giant Morgan Stanley is seen on a building in San Diego in this file photo from 2013 by Mike Blake, Reuters.

 

Morgan Stanley is set to increase its stake in its brokerage joint venture in China by 4.06% to 94%, an exchange filing showed on Wednesday, putting it on track to take full ownership of the business.

The US bank will inject 698 million yuan ($110 million) to boost the registered capital of the unit, a venture formed by Morgan Stanley and China Fortune Securities Co in 2011, to 1.71 billion yuan, according to an exchange filing by China Fortune.

The Shanghai-based state-owned company said on Wednesday that it had decided to sit out the capital injection, which effectively allows its ownership to dilute to 5.94% from the previous 10%.

The change requires the approval of the China Securities Regulatory Commission (CSRC) and other government authorities.

Morgan Stanley declined to comment.

The Wall Street bank acquired 39% of the joint venture from China Fortune in July, taking its ownership to 90%. It rebranded the unit as Morgan Stanley Securities China Co Ltd.

Global banks and asset managers have been boosting their stakes in their Chinese joint ventures since China first permitted foreign-majority ownership in some financial businesses in 2019.

Eight international banks have become the majority shareholders of their brokerage joint ventures in China.

 

• Reuters with additional editing by Jim Pollard

 

 

ALSO SEE:

 

 

China Economy is Heading for an Upswing, Says Morgan Stanley

 

China Set For Growth Upturn As Debt Plummets: Morgan Stanley

 

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond