Stock Groups

Morgan Stanley to boost stake in China brokerage to 94% -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – The Morgan Stanley corporate logo is seen on a San Diego building, California September 24, 2013. REUTERS/Mike Blake

Selena Li

HONG KONG, (Reuters) – Morgan Stanley According to an exchange filing, (NYSE:), is expected to raise its stake in China’s joint brokerage venture from 4.06% to 94%. It will be on track for full ownership.

According to a filing on China Fortune, the U.S. bank will invest 698 million Yuan ($110 Million) in order to increase the registered capital. This venture was formed by Morgan Stanley, China Fortune Securities Co, and is now worth 1.71 billion Yuan.

On Wednesday, the Shanghai-based state-owned firm said it would not participate in the capital injection. This effectively reduces its ownership to 5.94%, as opposed to the 10% previously.

This change must be approved by the China Securities Regulatory Commission, (CSRC), and other authorities.

Morgan Stanley refused to comment.

In July, the Wall Street bank purchased 39% of China Fortune’s joint venture and increased its stake to 90%. The unit was rebranded as Morgan Stanley Securities China Co Ltd.

Asset managers and global banks have increased their stakes within Chinese joint ventures ever since China opened up foreign-majority ownership to some financial institutions in 2019.

Their brokerage joint ventures have been majority owned by eight international banks. ($1 = 6.3683 renminbi)

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses caused by the data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]