Chinese regulators on Friday gave Goldman Sachs and Morgan Stanley permission to take majority control of their local securities joint ventures, a sign that China will continue to open its financial markets despite the disruption caused by the coronavirus outbreak, reported the Financial Times.
The Wall Street banks, two of the earliest foreign movers in China’s investment banking industry, will be allowed to increase their holdings in existing securities companies to 51 per cent, according to announcements from the banks.
Morgan Stanley holds a 49% stake in Morgan Stanley Huaxin Securities and Goldman holds 33% of Goldman Sachs Gao Hua Securities.
Todd Leland, co-president of Goldman in the Asia Pacific region excluding Japan, said the bank would continue to seek to take full control over the company. “We will be seeking to move towards 100% ownership at the earliest opportunity,” Leland said in a statement.