Morgan Stanley Securities receives approval to apply for new license

Morgan Stanley Securities (China) has been approved to commence securities investment in consulting business and change the proprietary operation of bonds, including government bonds and corporate bonds, into proprietary securities trading, according to the China Securities Regulatory Commission Shanghai bureau.

The information was updated by the CSRC Shanghai bureau on its official website on Mar 1.

As required by the Shanghai bureau, Morgan Stanley Securities (China) should be equipped with relevant personnel, business facilities, information systems and business premises for securities investment consulting and proprietary securities business in accordance with the law.

Apart from changing its company registration, Morgan Stanley Securities (China) should also apply to the CSRC for the renewal of the securities and futures business license within 15 working days from the date of obtaining the renewed business license. Based on the CSRC reply, the securities firm's articles of associations should be amended, with the amendments reported to the regulator, according to the Shanghai bureau's announcement.

A Morgan Stanley spokesperson said that the new license will broaden the scope of their securities operations in China, enabling the company to better serve their clients.

In July 2021, Morgan Stanley invested acquired 39 percent stake of the joint venture Morgan Stanley Huaxin Securities Co Ltd with 570 million yuan ($79.2 million). The deal increased Morgan Stanley's stake to 90 percent and changed the joint venture's name into Morgan Stanley Securities (China). Morgan Stanley's stake has been increased over time, reaching 94.06 percent at present.

International financial giants have accelerated their mapping in China thanks to the country's continued opening-up in the financial sector. While the limit for foreign ownership in a securities firm was relaxed to 51 percent in April 2018, the restriction was completely removed on Apr 1, 2020.

Up to date, there are nine foreign-controlled securities firms in China, including UBS Securities, Morgan Stanley China and Standard Chartered Securities, the latter of which became China's first newly-established wholly foreign-owned securities company in January 2023.