FILE PHOTO: Morgan Stanley’s headquarters are located in New York on January 9, 2013. REUTERS / Shannon Stapleton
May 28, 2021
HONG KONG (Reuters) -Morgan Stanley is buying shares offered for sale by its partner in its Chinese securities and mutual fund joint ventures for approximately $ 150 million.
Wall Street Bank joins several other overseas banks in an attempt to fully take over their Chinese operations after Beijing removed restrictions on foreign ownership in the securities and mutual fund industries on April 1 last year.
With direct ownership, foreign banks could expand their operations in the multi-billion dollar Chinese financial sector and better integrate them into their global operations.
Morgan Stanley’s partner, Shanghai Chinafortune Co, announced Friday that it reported a 39% stake in Morgan Stanley Huaxin Securities and its total 36% stake in Morgan Stanley Huaxin Fund Management Co through the Shanghai United Assets and Equity Exchange the Wall Street Bank sold.
The deal, which is pending regulatory approval, means Morgan Stanley will own 90% of the securities joint venture, which houses the bank’s investment banking and trading operations on the mainland, while Chinafortune will retain a 10% stake.
Wall Street Bank will now own 85% of the fund business.
“These are important steps for Morgan Stanley if we are to build a leading, fully integrated financial services company in China,” Morgan Stanley said in a statement.
“China continues to be a major strategic priority for Morgan Stanley and we are encouraged by the accelerating pace of opening up China’s financial markets.”
Goldman Sachs signed a pact to buy its securities joint venture partner in December that puts it at the top of the list of overseas banks looking to own these types of businesses. The deal is still awaiting regulatory approval.
JPMorgan, which owns 71% of its securities business, and Credit Suisse have announced that they want full ownership of their businesses.
($ 1 = 6.3633 Chinese yuan renminbi)
(Reporting by Scott Murdoch in Hong Kong, Samuel Shen in Shanghai; editing by Muralikumar Anantharaman and Steve Orlofsky)
This article originally appeared on www.oann.com