Morgan Stanley has a chance to raise stakes in China ventures

A pedestrian is reflected in the exterior of Morgan Stanley headquarters in New York, U.S., on Thursday, July 12, 2018. Photographer: Bess Adler/Bloomberg

Shanghai Chinafortune Co said on Friday its brokerage subsidiary plans to sell stakes in Morgan Stanley’s Chinese securities and mutual fund ventures, potentially enabling the U.S. bank to move toward full control.

China Fortune Securities Co plans to auction a 39% stake in Morgan Stanley Huaxin Securities, and its entire 36% stake in Morgan Stanley Huaxin Fund Management Co through the Shanghai United Assets and Equity Exchange, Chinafortune said in an exchange filing.

Morgan Stanley declined to comment.

Global banks and asset managers, including Morgan Stanley, JPMorgan and Goldman Sachs, have been increasing stakes in joint ventures in China, as Beijing fully opened the country’s financial industry last year.

Majority, or full ownership could make it easier for foreign banks to expand their operations in the multi-trillion-dollar Chinese financial sector.

Chinese state-controlled companies often transfer stakes through auctions. In 2019, Morgan Stanley bought a 2% stake in its Chinese securities JV from China Fortune Securities also through an auction.

Following the stake sale, China Fortune Securities will still own 10% of Morgan Stanley Huaxin Securities, which is currently 51% owned by Morgan Stanley.

Morgan Stanley currently owns a 49% stake in its Chinese fund venture, which means the U.S. bank will gain majority control if it succeeds in buying the stake to be auctioned from China Fortune Securities.

Shanghai Chinafortune said the auction deals will need to go through certain procedures.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.