Morgan Stanley continues to inch closer to full ownership of its brokerage unit in China with the latest stake boost in the joint venture.
Morgan Stanley is set to inject 698 million yuan ($110 million) to boost the registered capital of the brokerage joint venture to 1.71 billion yuan, according to an exchange filing, pending regulatory approval.
This allows the American lender to increase its stake by 4.05 percent to 94 percent.
Shanghai-based state-owned partner, China Fortune Securities Co, did not participate in the capital injection and its ownership will effectively dilute 5.94 percent from the original 10 percent ownership.
Morgan Stanley Securities China
Morgan Stanley continues to gradually progress towards full ownership of its brokerage unit this year after boosting its ownership by 39 percent to 90 percent in July and renaming the business as Morgan Stanley Securities China Co Ltd.
Thus far, eight international banks have become majority shareholders of their brokerage joint ventures.
