Morgan Stanley to withdraw from China joint venture: Report
Troubled US banking giant Morgan Stanley is planning to sell its entire stake in a China joint venture investment bank and shift to another local brokerage, state media reported Tuesday.
By Agencies |
BEIJING: Troubled US banking giant Morgan Stanley is planning to sell its entire stake in a China joint venture investment bank and shift to another local brokerage, state media reported Tuesday.
The legendary Wall Street company is in talks with private equity firms to find a buyer of its 34.4-per cent stake in the China International Capital Corp (CICC), the nation's first investment bank, the China Daily said.
"If the report is true, I think the reason could be that Morgan Stanley currently does not have the control on business management of CICC," said She Minhua, a Shanghai-based analyst with CITIC Securities.
According to earlier local reports, Morgan Stanley had already signed an agreement with Shanghai-based China Fortune Securities for a joint venture investment bank and might be interested in a controlling stake.
The firm might invest four billion yuan ($549.9 million) for 33.5 per cent of China Fortune Securities after withdrawing from CICC, said the reports.
Morgan Stanley booked a fourth-quarter loss of $3.59 billion in 2007 due to its involvement in the US subprime mortgage default crisis.
In December, China Investment Corporation, the nation's sovereign wealth fund, took a 9.9-per cent stake in Morgan Stanley for $5 billion.
Both Morgan Stanley and CICC declined to comment
The legendary Wall Street company is in talks with private equity firms to find a buyer of its 34.4-per cent stake in the China International Capital Corp (CICC), the nation's first investment bank, the China Daily said.
"If the report is true, I think the reason could be that Morgan Stanley currently does not have the control on business management of CICC," said She Minhua, a Shanghai-based analyst with CITIC Securities.
According to earlier local reports, Morgan Stanley had already signed an agreement with Shanghai-based China Fortune Securities for a joint venture investment bank and might be interested in a controlling stake.
The firm might invest four billion yuan ($549.9 million) for 33.5 per cent of China Fortune Securities after withdrawing from CICC, said the reports.
Morgan Stanley booked a fourth-quarter loss of $3.59 billion in 2007 due to its involvement in the US subprime mortgage default crisis.
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In December, China Investment Corporation, the nation's sovereign wealth fund, took a 9.9-per cent stake in Morgan Stanley for $5 billion.
Both Morgan Stanley and CICC declined to comment
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