US bank Morgan Stanley is looking to increase its stake in its Chinese brokerage joint venture to 94%, the increase of 4.06% would place it on track to take complete ownership of the endeavor, reports Reuters.
The bank will inject RMB 698 million ($110 million) to boost the registered capital of the unit, a venture formed by Morgan Stanley and China Fortune Securities Co in 2011, to RMB 1.71 billion, according to an exchange filing by China Fortune.
The Shanghai-based state-owned company said on Wednesday that it had decided to sit out the capital injection, which effectively allows its ownership to dilute to 5.94% from the previous 10%. The change requires the approval of the China Securities Regulatory Commission (CSRC) and other government authorities.