Morgan Stanley Investment Management (MSIM) announced that the China Securities Regulatory Commission (CSRC) has given the green light for it to take full ownership of Morgan Stanley Huaxin Fund Management.
Upon completion, MSIM will increase its share in the company to 100% from 49% now.
“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,” said Dan Simkowitz, head of investment management at Morgan Stanley.
“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.”
The sale is subject to business registration and other procedures required by Chinese regulatory entities.
Morgan Stanley Huaxin Fund Management is a joint venture between the American investment manager and China Fortune Securities established in 2008.
Headquartered in Shenzhen, the company provides 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.
Established in 1975, MISM is the asset management division of Morgan Stanley and has more than $1.3trn in assets under management as of the end of 2022.
The Beijing administration has been accelerating approvals for foreign asset managers to operate in China since the end of last year.
Only two weeks ago, the CSRC gave the nod for JP Morgan to complete the acquisition of its joint venture fund management business, China International Fund Management.
Meanwhile, in November, Manulife was also given the go-ahead to take full ownership of its China fund management joint venture, Manulife TEDA Fund Management.