(Yicai Global) Dec. 8 -- The Chinese partner of Morgan Stanley [NYSE:MS] intends to sell its controlling stake in their joint venture (JV), Wei Christianson, co-chief executive of the investment bank's Asia-Pacific business, told Yicai Global in an interview.
The Chinese government is poised to lift restrictions on foreign equity stakes, so Morgan Stanley hopes to take control of its securities Morgan Stanley Huaxin Securities Co. JV, Sina Finance reported.
The investment bank currently holds 49 percent of the NYSE:MS, up from an initial one-third. Morgan Stanley and China Fortune Securities Co. formed the JV in Shanghai in 2011. With registered capital of CNY1 billion (USD150 million), it provides global investment banking and financing services for clients at home and abroad.
Chinese regulators will raise the limit on foreign ownership in JVs in the futures, securities and funds industries to 51 percent, with this cap to be phased out three years after it takes effect, Vice Finance Minister Zhu Guangyao said at a press briefing on Nov. 10. China will also ease restrictions on foreign ownership in JVs in the banking and insurance sectors in future.