Morgan Stanley secures approval to take majority stake in China securities JV

Maria Nikolova

Morgan Stanley Huaxin Securities’ current scope of business includes underwriting and sponsorship of equities in the domestic China market, as well as underwriting, sponsorship and proprietary trading of bonds.

Leading global financial services firm Morgan Stanley (NYSE:MS) has secured approval from the China Securities Regulatory Commission (CSRC) to take a majority stake in its China securities joint venture, Morgan Stanley Huaxin Securities Company Limited. Following completion of the transaction, the firm will have increased its holding from 49% to 51%.

Shanghai-based Morgan Stanley Huaxin Securities was jointly founded by Huaxin Securities and Morgan Stanley in 2011. For nearly a decade, both shareholders have brought their complementary expertise to the joint venture and built a strong partnership. At present, Morgan Stanley Huaxin Securities’ business includes underwriting and sponsorship of equities in the domestic China market, as well as underwriting, sponsorship and proprietary trading of bonds.

In 1994, Morgan Stanley became one of the first global investment banks to establish a presence in mainland China. Since that time, the firm’s strategy has been to build a leading, fully integrated financial services firm in China. With offices in Beijing, Shanghai, Hangzhou, Shenzhen and Zhuhai, and a regional office in Hong Kong, Morgan Stanley provides a wide range of services to domestic and international clients including financing, restructuring, M&A advisory, research, fixed income and foreign exchange.

Morgan Stanley’s focus on achieving majority ownership and control of its domestic securities entity demonstrates its confidence in China’s growth outlook, economic reform program, and commitment to opening up its capital markets.

Wei Sun Christianson, Asia-Pacific Co-CEO and CEO China, Morgan Stanley, commented:

“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.”

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