Morgan Stanley starts new JV in China
June 13, 2011
US investment bank Morgan Stanley (MS.NYSE) announced it would launch a new joint venture with China Fortune Securities, also known as Huaxin Securities, the Wall Street Journal reported. The new JV comes as the firm attempts to recover from its disastrous tie-up with China International Capital Corporation (CICC). Morgan Stanley was among the first Western securities firms to enter China when it co-founded CICC in 1995. However, the company was ultimately shunted aside in CICC’s internal operations, and in December 2010 Morgan Stanley was allowed to sell its 34.3% stake in the firm. Morgan Stanley’s new 33% stake in China Fortune will allow the firm to again underwrite renminbi-denominated equity and debt issues on China’s domestic capital markets.