29 Dec 2021
Morgan Stanley to Increase Stake in its brokerage joint venture in China to 94%
The Index Today
An exchange filing by China Fortune showed on Wednesday that Morgan Stanley is set to increase its stake in its brokerage joint venture in China by 4.06 per cent to 94%, putting it on track to take full ownership of the business.
In addition to the exchange filing by China Fortune, the U.S. bank will inject 698 million yuan ($110-million) to boost the registered capital of the unit, a venture formed by Morgan Stanley and China Fortune Securities Co in 2011, to 1.71 billion yuan.
On Wednesday, the company said that it had decided to sit out the capital injection, which effectively allows its ownership to dilute to 5.94 per cent from the previous 10 per cent, said in the statement of Shanghai-based state-owned company.
The change requires the approval of the China Securities Regulatory Commission (CSRC) and other government authorities. Morgan Stanley declined to comment.
©Photo: FT montage / Reuters