Morgan Stanley (MS.N) has gotten regulatory endorsement to take a larger part stake in its China securities joint venture, three individuals with direct information on the issue said, as Beijing continues to open its money related sector to foreigners. US Bank can expand operations in China.
The endorsement comes as policymakers and authorities step up efforts to shield the world’s second-largest economy, battered by the coronavirus pandemic.
The Wall Street loan specialist got the gesture from the China Securities Regulatory Commission to raise its stake in Morgan Stanley Huaxin Securities to 51%, the individuals said, declining to be named as they were not authorized to speak to the media.
A spokesman for Morgan Stanley in Hong Kong declined to remark.
Morgan Stanley Huaxin Securities’ existing operations include underwriting and sponsoring equity and obligation offerings as well as exclusive exchanging of bonds, it says on its website.
Swiss moneylender UBS (UBSG.S) turned into the first outside bank to hold a larger part stake in a China securities business under the new rules in 2018. Japanese financier Nomura Holdings (8604.T) and JPMorgan (JPM.N) got their approvals last year.
Credit Suisse (CSGN.S) and Goldman Sachs (GS.N) are still anticipating approvals after they submitted applications for lion’s share controlled securities JVs.
Beijing promised to scrap remote ownership caps on securities firms and mutual funds for outside investors from April 1, in a between time Sino-U.S. economic accord signed in January.
The Morgan Stanley endorsement comes a day prior to China briefly bars section for most foreigners as a between time measure in response to the coronavirus scourge.
Market participants said the thumbs up was a sign the country is continuing with the conventional opening up of money related markets, despite the virus.
Last Friday, Shanghai said some of the world’s top money related institutions, including BlackRock and JPMorgan, were stepping up investments in China’s monetary hub, undeterred by the pandemic. US Bank can expand operations in China.
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