Morgan Stanley, UBS said to be in talks to boost China JV stakes

Hong Kong

MORGAN Stanley and UBS Group AG are in talks with local partners to boost holdings in their China securities businesses, a sign of growing confidence in those operations, according to people familiar with the matter.

The banks are engaged in separate discussions on raising their stakes to 49 per cent, the maximum allowed under current regulations, the people said, asking not to be identified because the negotiations are confidential. UBS currently owns about 25 per cent of its China securities firm, which has a licence to trade domestic shares. Morgan Stanley holds 33 per cent of its venture, which mostly provides investment-banking services and research.