FT reports: Morgan Stanley has received Chinese government approval to sell its 34.3 per cent stake in China International Capital Corp, one of the country’s top investment banks, paving the way for the US group to set up a fresh venture in the country.
In a brief announcement on its website, China’s securities regulator said it had approved a transfer of more than 5 per cent of CICC shares. CICC officials confirmed that was a reference to Morgan Stanley’s stake in the company.
Four listed companies that hold stakes in Shanghai-based brokerage China Fortune Securities said the group would soon set up an investment bank joint venture with Morgan Stanley. That can only happen once it has divested the CICC stake.
Fortune will hold two-thirds of shares, the US investment bank will own the rest.
Morgan Stanley hopes the venture will provide more management control and more scope to underwrite and broker deals and to trade stocks and securities in China.
Sale of its CICC stake for about $1bn will produce a healthy profit on the initial investment of $37m Morgan Stanley made 15 years ago.
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- Marc A. Ross
- Washington, DC, United States
- Marc has an extensive background in business development for companies as well as directing the advocacy operations, communications efforts, fundraising programs and public affairs for nonprofits, corporations and political campaigns for the highest offices in the United States and the United Kingdom. Marc is available for consulting, workshops, panels, interviews, training sessions, advice, commentary and speaking on all things Advocacy 2.0. Marc can be reached via email by sending a note to marc (at) 2ndsix.com or by twitter at @microadvocacy.
