The approval granted by CSRC enables Morgan Stanley to increase its stake from 49% to 51% in the securities joint venture
Morgan Stanley headquarters in new York City. (Credit: Morgan Stanley)
Morgan Stanley has secured regulatory approval to take a majority stake in Morgan Stanley Huaxin Securities, its China securities joint venture (JV) with Huaxin Securities.
The approval granted by the China Securities Regulatory Commission (CSRC) enables the US investment banking company to increase its stake from 49% to 51% in the securities joint venture.
Morgan Stanley said that it is taking majority ownership and control in the domestic securities entity based on its confidence in China’s growth outlook, economic reform programme, and commitment to open up its capital markets.
Morgan Stanley Asia-Pacific co-CEO and China CEO Wei Sun Christianson said: “China is a core strategic focus for the Firm and a market in which we and many of our clients see significant opportunities.
“We are proud of our long history and track record in China and look forward to further investment in Morgan Stanley Huaxin Securities to provide the best advice and services to clients.”
Activities of Morgan Stanley Huaxin Securities
Founded in 2011, the Shanghai-based Morgan Stanley Huaxin Securities has been engaged in underwriting and sponsorship of equities in the domestic Chinese market. The securities joint venture also offers underwriting, sponsorship and proprietary trading of bonds.
The Chinese firm is said to cater to enterprises with customised financing solutions that include initial public offerings and refinancing of listed companies such as share placement, non-public issuance of additional shares, and public issuance of additional shares among others.
Other services of the joint venture include debt financing, merger and acquisition (M&A) and financial advisory.
Morgan Stanley, which forayed into mainland China in 1994, has offices across Beijing, Shanghai, Shenzhen, Hangzhou, and Zhuhai, apart from a regional office in Hong Kong. In China, the company has been serving its domestic and international clients with financing, restructuring, research, M&A advisory, fixed income, and foreign exchange services.
Last month, the US investment banking company signed a deal worth around $13bn to acquire E*TRADE Financial, a Virginia-based electronic trading platform provider.