Exclusive | Morgan Stanley will seize chance to control China business after 'surprise' foreign ownership U-turn, says CEO James Gorman
James Gorman says he’ll be looking for 51pc ownership in the mainland, but admits the change in Beijing’s policy came as a ‘pleasant surprise’
Morgan Stanley’s global chief executive James Gorman said on Monday his bank would look to increase its stake in its mainland China investment banking joint venture to 51 per cent, and take control of its operations.
But he admitted being taken by surprise by last week’s decision that China plans to remove foreign ownership limits on banks while allowing overseas firms to take majority stakes in local securities ventures, fund managers and insurers.
Gorman’s decision to target a controlling 51 per cent makes Morgan Stanley the first global investment bank to announce explicitly its intention to take a majority stake in its mainland business, following last week’s announcement that the previous 49 per cent ownership cap would be lifted.
“I would certainly hope so,” said Gorman, when asked by the Post whether Morgan Stanley intended to up its stake in Morgan Stanley Huaxin Securities to 51 per cent.
“A global corporation of the size and stature of Morgan Stanley should control its destiny.”
China’s move is being read as a major step towards the long-awaited opening of its financial system. The new rules will effectively give global financial companies unprecedented access to the world’s second-largest economy.
