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FILE PHOTO: A sign is posted on the Morgan Stanley Building in New York, United States, July 16, 2018. REUTERS / Lucas Jackson / File Photo
HONG KONG (Reuters) – Morgan Stanley is about to take a majority stake in its Chinese investment bank joint venture after it has seized the 2% stake needed in the control, say the paper. 39; exchange.
Huaxin Securities signed a share transfer agreement on August 1 to transfer Morgan Stanley Huaxin Securities' 2% stake to the US bank, according to a statement dated August 2 filed on the Shanghai Stock Exchange by the parent company of Huaxin, Shanghai China Fortune Co (600621.SS).
Morgan Stanley was the only bidder, said the document, adding that the transfer still had to be approved by the Chinese Securities Regulatory Commission (CSRC).
The bank currently holds a 49% interest in the joint venture.
A buyer will pay 376.2 million yuan (£ 44.86 million) for the 2% stake in Morgan Stanley Huaxin Securities, according to a separate statement released Aug. 1 on the Shanghai United Assets and Equity Exchange website.
The news comes amid rising tensions between the United States and China. US President Donald Trump has pledged to impose a 10% tariff on the remaining $ 300 billion of Chinese imports as of September 1, thus worsening the trade war between the two major economies and the upsetting financial markets.
Report by Cheng Leng in Beijing and Alun John in Hong Kong, additional report by Samuel Shen in Shanghai and Julie Zhu in Hong Kong; Edited by Himani Sarkar
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