(Adds more details from statement, background)
BEIJING, Feb 3 (Reuters) - Morgan Stanley said on
Friday its asset management unit has received Chinese regulatory
approval to take full ownership of a China mutual fund venture,
marking a key step toward broadening its footprint in the
world's second-biggest economy.
The announcement comes two weeks after JPMorgan received a nod to buy out its China mutual fund venture, as
Beijing speeds up approvals to foreign financial institutions.
The China Securities Regulatory Commission (CSRC) has
allowed Morgan Stanley Investment Management to boost its stake
in Morgan Stanley Huaxin Funds to 100% from 49%, the Wall Street
bank said.
"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," Dan Simkowitz, Head of
Investment Management at Morgan Stanley, said in a statement.
Gokul Laroia, CEO of Asia at Morgan Stanley, said the bank
has been active in China for almost three decades, and is fully
committed to growing in the country.
"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," Laroia added.
China has granted a slew of licences to foreign banks and
asset managers in recent months as Beijing has reopened its
economy after three years of strict zero-COVID restrictions.
The CSRC has recently awarded mutual fund licences to
Fidelity International and Neuberger Berman, and has allowed
Schroders to set up a wholly-owned unit in China's $3.7 trillion
retail fund industry.
Headquartered in Shenzhen, Morgan Stanley Huaxin Funds is a
joint venture between Morgan Stanley Investment Management and
Chinese brokerage Huaxin Securities.
($1 = 6.7380 Chinese yuan renminbi)
(Reporting by Hong Kong newsroom. Editing by Jane Merriman and
Louise Heavens)
