Morgan Stanley launches another JV
By Lydia Chen |
June 11, 2011, Saturday
|
Print Edition
Print Edition
MORGAN Stanley and its Chinese partner yesterday launched their securities joint venture, a milestone the United States investment bank said would help it offer comprehensive financial services in China.
Huaxin Securities, a Shanghai-based brokerage, holds a two-thirds stake in Morgan Stanley Huaxin Securities Co, and Morgan Stanley owns a one-third interest, which is the limit allowed for overseas financial institutions by Chinese authorities.
Wang Wenxue, chairman of Huaxin Securities, has also been appointed chairman of the new firm while Yang Kai, a managing director of Morgan Stanley, is the CEO.
The new JV, with a registered capital of 1.02 billion yuan (US$158 million), however, will have a different market positioning from the China International Capital Corp, a JV Morgan Stanley first set up with some Chinese and foreign companies, including China Construction Bank, in 1995.
The new venture with Huaxin will mainly focus on small firms as both sides believe the financing needs in the A-share market are going to grow fast, said John Mack, chairman of Morgan Stanley.
The new company now has about 100 employees, said Sun Wei, Asia-Pacific Co-CEO and China CEO of Morgan Stanley.
Last year, Morgan Stanley sold its 34.3 percent stake in CICC to a group, including private-equity firms TPG Capital and KKR, paving the way for the JV with Huaxin. China's securities rules forbids foreign companies from having more than one JV at a time in the country.
Huaxin Securities, a Shanghai-based brokerage, holds a two-thirds stake in Morgan Stanley Huaxin Securities Co, and Morgan Stanley owns a one-third interest, which is the limit allowed for overseas financial institutions by Chinese authorities.
Wang Wenxue, chairman of Huaxin Securities, has also been appointed chairman of the new firm while Yang Kai, a managing director of Morgan Stanley, is the CEO.
The new JV, with a registered capital of 1.02 billion yuan (US$158 million), however, will have a different market positioning from the China International Capital Corp, a JV Morgan Stanley first set up with some Chinese and foreign companies, including China Construction Bank, in 1995.
The new venture with Huaxin will mainly focus on small firms as both sides believe the financing needs in the A-share market are going to grow fast, said John Mack, chairman of Morgan Stanley.
The new company now has about 100 employees, said Sun Wei, Asia-Pacific Co-CEO and China CEO of Morgan Stanley.
Last year, Morgan Stanley sold its 34.3 percent stake in CICC to a group, including private-equity firms TPG Capital and KKR, paving the way for the JV with Huaxin. China's securities rules forbids foreign companies from having more than one JV at a time in the country.
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