Morgan Stanley Investment Management has received approval from the China Securities Regulatory Commission (CSRC) to take a full controlling stake in Morgan Stanley Huaxin Funds, marking a key strategic advancement for the company's broader footprint in China.
The deal is subject to business registration and other procedures required by Chinese regulatory entities.
On completion, Morgan Stanley Investment Management will have increased its stake in Morgan Stanley Huaxin Funds from 49% to 100%.
Dan Simkowitz, head of investment management at Morgan Stanley said: "Wholly-owning our China mutual funds business will allow us to more fully serve this dynamic asset and wealth management market and adds a significant pillar of growth to our global investment management franchise.
"As we further invest in our onshore platform, we will bring over our four decades of industry experience and global research expertise in sustainability and diversified portfolio management to help domestic clients achieve their investment goals."
Gokul Laroia, CEO of Asia at Morgan Stanley, said: "The Firm has been active in China for almost three decades and we are committed to our goal of building a fully integrated financial services firm to meet the evolving needs of domestic and global clients. Today's announcement is an important strategic milestone along this path."
"With high levels of wealth creation, growing demand for financial advice, and with the launch of a private pension scheme, we see long-term opportunities in China's asset management industry," added Mr Laroia.
Headquartered in Shenzhen, Morgan Stanley Huaxin Funds became a joint venture in June 2008.
The company provides diversified investment management services to retail and institutional clients through mutual funds and segregated management accounts, including fixed income, active equity, quantitative equity, and multi-asset investment.
With over a decade of experience investing in the domestic market, the company further said it has built a dedicated investment and research team deeply rooted in China, strengthened by Morgan Stanley Investment Management's global expertise and risk management.
