Morgan Stanley and Huaxin Securities announced on Friday that they have started operations of their securities joint venture in China after receiving a business licence on May 30. The Shanghai-based JV will allow Morgan Stanley to underwrite and sponsor primary equity and bond issues in China’s domestic market and also to conduct proprietary trading of corporate and government bonds.
The launch comes five months after the two firms received regulatory approval to set up the joint venture, which will operate under the name of Morgan Stanley Huaxin Securities. As per Chinese regulations, Morgan Stanley owns one-third of the JV, while its Chinese partner, which is also known as China...