Morgan Stanley and Huaxin launch JV

Morgan Stanley Huaxin Securities’ main thrust is underwriting CNY-denominated stocks and bonds for Chinese small-cap companies.

Morgan Stanley on Friday formally unveiled a new joint venture with Huaxin Securities Co Ltd, in a move to boost its presence in China's investment banking industry.

The Shanghai-based venture, Morgan Stanley Huaxin Securities Co Ltd, will focus on underwriting yuan-denominated stocks and bonds for small-cap companies in China.

Huaxin Securities holds a two-thirds stake in the venture, which has registered capital of approximately 1 billion yuan ($154 million), with Morgan Stanley holding the remainder.

Huaxin is a mid-sized domestic brokerage. Founded in 2001, the Shenzhen-based company currently operates 21 branches nationwide.

The joint venture was approved by the regulator on Dec 31, and Yang Kai, chief executive officer of Morgan Stanley Huaxin Securities, said around 100 staff will be employed.

"Morgan Stanley is proud of its long history of commitment and success in China, a market that remains a major priority within our international growth strategy," said James Gorman, president and chief executive of Morgan Stanley, in a statement.

View the full story in China Daily.