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 U.S. bank will inject $110m 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%.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
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.
Source: Reuters
Can’t stop reading? Read more
Sixth Street-backed Caris Life Sciences targets $5.35bn valuation in US IPO
Sixth Street-backed Caris Life Sciences targets $5.35bn valuation in US IPO Sixth Street-backed...
Advent eyes $5.06bn Spectris takeover in UK’s biggest buyout bid of 2025
Advent eyes $5.06bn Spectris takeover in UK’s biggest buyout bid of 2025 Advent International has...
CalPERS posts 11.3% private equity return as $92bn strategy revamp gains traction
CalPERS posts 11.3% private equity return as $92bn strategy revamp gains traction The California...