Morgan Stanley Investment Management has received regulatory approval from the China Securities Regulatory Commission (CSRC) to take full ownership of its Chinese joint venture Morgan Stanley Huaxin Funds.
Up until now, the investment manager had a 49% stake in the business, and the increase is subject to business registration and regulatory procedures.
Morgan Stanley Huaxin Funds is headquartered in Shenzhen and became a joint venture in 2008. The company provides investment management services to retail and institutional clients through mutual funds and segregated management accounts.
“Wholly owning our China mutual funds business will allow us to more fully serve this dynamic asset and wealth management market and adds a significant pillar of growth to our global investment management franchise,” said Dan Simkowitz, head of investment management at Morgan Stanley.
“As we further invest in our onshore platform, we will bring over our four decades of industry experience and global research expertise in sustainability and diversified portfolio management to help domestic clients achieve their investment goals.”
Gokul Laroia, chief executive of Asia at Morgan Stanley, added: “The firm has been active in China for almost three decades and we are committed to our goal of building a fully integrated financial services firm to meet the evolving needs of domestic and global clients. Today’s announcement is an important strategic milestone along this path.
“With high levels of wealth creation, growing demand for financial advice, and with the launch of a private pension scheme, we see long-term opportunities in China’s asset management industry.”