CBI members, Goldman Sachs and Morgan Stanley announced on Friday that China’s securities regulators had given the two banks permission to take majority control of their securities joint ventures.
Both banks will be able to increase their holdings in existing securities companies to 51%. Morgan Stanley current holds a 49% stake in Morgan Stanley Huaxin Securities and Goldman Sachs owns 33% of Goldman Sachs Gao Hua securities.
Todd Leland, co-president of Goldman Sachs, Asia-Pacific region, excluding Japan, said that the bank would continue to seek to take full control of the company, stating: “[Goldman Sachs] will move towards 100% ownership at the earliest opportunity.”
Foreign banks will be able to apply to take full control of their joint ventures in China next month. Goldman Sachs has already indicated its intention to move its operations to under one corporate entity, as a result of the changing rules determining ownership.
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