© Reuters. FILE PHOTO: Morgan Stanley's headquarters are located in New York on January 9, 2013. REUTERS / Shannon Stapleton
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 lifted 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 Shanghai NYSEfortfort Co (NYSE 🙂 partner announced Friday that it had sold a 39% stake in Morgan Stanley Huaxin Securities and its entire 36% stake in Morgan Stanley Huaxin Fund Management Co through Shanghai United Assets and Equity Street Bank sells exchanges.
The deal, which is still subject to regulatory approval, means Morgan Stanley will own 90% of the securities joint venture, which houses the bank's mainland investment banking and trading operations, 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 as we seek 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 (NYSE 🙂 signed a pact to buy its securities joint venture partner in December, putting 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 (NYSE :), which owns 71% of its securities business, and Credit Suisse (SIX 🙂 have also announced that they want full ownership of their company.
($ 1 = 6.3633 renminbi)
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