The China securities regulator has given approval for Morgan Stanley to increase its stake in its Chinese securities venture to 49 percent. The approval means the U.S. firm is the first foreign bank to receive such consent.
A report from news agency «Reuters» confirmed the confirmation after the Shanghai office of the China Securities Regulatory Commission (CSRC) posted on its website it had approved the important terms of the articles of association of joint venture Morgan Stanley Huaxin Securities Co.
In China Morgan Stanley Huaxin Securities' offers underwriting and sponsoring of stocks and bonds. It posted a net profit $4.33 million in 2015.
UBS Also Keen
finews.asia reported last week that Swiss bank UBS is also in talks with its joint venture partner in China to increase its stake in Chinese investment bank and brokerage firm UBS Securities.
In 2012 China allowed foreign banks to boost holdings in securities joint ventures to a maximum 49 percent from the previous cap of a third. However, until recently foreign investment banks have not been keen on raising their stakes.
