Morgan Stanley’s China Partner Seeks to Sell Stakes in Ventures
(Bloomberg) -- China Fortune Securities Co. is seeking buyers for stakes in two ventures with Morgan Stanley, paving the way for the U.S. bank to take further control of the businesses.
The Chinese firm is seeking 569.6 million yuan ($88.1 million) for a 39% stake in a securities venture it has with the U.S. bank, and will retain 10%, according to a filing in Shanghai. It also proposed to sell its entire 36% holding in a fund venture for 389.3 million yuan.
The move comes as China last year allowed foreign banks to gain full control of their local ventures. The nation is opening its $54 trillion financial market to more foreign competition to attract capital and instill more discipline in its investment banking industry.
Foreign banks have aggressive plans to expand in China. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are vying to become the first Wall Street bank to achieve full ownership of securities operations on the mainland. UBS Group AG, the first foreign bank to win approval for majority control of its China securities venture, is planning to buy another 16% stake, raising its holding to 67%.
Morgan Stanley currently has a 51% stake in its China joint venture.
A spokesman at Morgan Stanley declined to comment.
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