Morgan Stanley to control its China banking JV
Morgan Stanley is getting closer to taking a controlling stake in its Chinese securities joint venture after picking up a 2% share for $54 million.
The US bank buys 2% needed for control of China securities joint venture
Stocks impacted: Morgan Stanley (MS)
Huaxin Securities signed an equity transfer contract on August 1 to move the 2% stake in Morgan Stanley Huaxin Securities to the U.S. bank. Morgan Stanley currently owns 49% of the JV. The transfer is yet to be approved by the China Securities Regulatory Commission. Meanwhile, the US-China trade relations still leave much to be desired. Yesterday, Trump threatened to impose a 10% tariff on the remaining $300 billion of Chinese imports from September 1, escalating the trade war between the two countries and jolting financial markets. Against this backdrop, Morgan Stanley shares plunged 3.66% on Thursday.
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