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The
Wall Street bank joins several other foreign banks who are
looking to take full ownership of their Chinese businesses after
Beijing scrapped foreign ownership limits in the securities and
mutual fund industry on April 1 last year.
Outright ownership could allow foreign banks to expand their
operations in the multitrillion-dollar Chinese financial sector,
and better integrate them with their global businesses.
Morgan Stanley's partner Shanghai Chinafortune Co said on Friday
it is selling a 39% stake in Morgan Stanley Huaxin Securities,
and its entire 36% stake in Morgan Stanley Huaxin Fund
Management Co to the Wall Street bank through the Shanghai
United Assets and Equity Exchange.
The deal, which still requires regulatory approval, means Morgan
Stanley will own 90% of the securities joint venture – which
houses the bank's mainland investment banking and trading
businesses – while Chinafortune will maintain a 10% stake.
The Wall Street bank will now own 85% of the funds business.
Goldman Sachs signed a pact in December to buy out its
securities joint venture partner, taking it to the forefront of
the list of foreign banks who want to own those types of
businesses. The deal is still awaiting regulatory signoff.
JPMorgan, which holds 71% of its securities business, and Credit
Suisse too have flagged they would like 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)
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