Morgan Stanley CEO James Gorman said the investment bank is interested in raising its stake in its China-based securities joint venture, Morgan Stanley Huaxin Securities, from 49% to 51% and eventually to 100%, Xinhua News Agency reported June 3.
U.S.-based Morgan Stanley also wants to expand its wealth management business given the growth of the middle class in China, the CEO added.
Chinese regulators in April liberalized the country's financial services industry by allowing foreign firms to own majority stakes in local securities joint ventures. Following the reforms, several foreign firms, including UBS Group AG, have submitted applications to take majority stakes in their respective joint ventures in China.
