Others News
- Morgan, China Fortune plan venture
Date: 10-Dec-2007 Sources: (Shenzhen Daily)
MORGAN Stanley planned an investment banking joint venture with China Fortune Securities, one of the country's oldest brokers, to expand its business and win clients in the fastest-growing major capital market, sources close to the situation said Friday.
The Wall Street bank, which signed a strategic cooperation agreement with Shanghai-based China Fortune earlier last week, intends to own at least one third of the proposed venture.
Senior representatives of Morgan Stanley and China Fortune were finalizing details such as the size of the firm's capital and the number of board members, the sources said.
'Since the preparations of the venture have already won blessing from senior Chinese officials, I don't think it will be too difficult for Morgan Stanley to win the government's nod for the venture,'said one of the sources.
China Fortune is jointly owned by several subsidiaries of State-owned Shanghai Electronics Group, including Feilo Acoustics and chipmaker Shanghai Belling.
Some shareholders of China Fortune were expected to own a combined minority stake in the planned venture, while Morgan Stanley wanted management control, the sources said.
If successful, Morgan Stanley would become the first foreign bank to have two investment banking joint ventures in China. It already owns about one third of China International Capital Corp. (CICC), established in 1995.
Morgan Stanley's rivals, such as Goldman Sachs and UBS, also have investment banking ventures in China in which they have de facto management control.
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