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Morgan Stanley approved to buy fund stake

(Agencies)
Updated: 2008-05-08 14:23

The China Securities Regulatory Commission (CSRC) has approved Morgan Stanley International Holdings Inc's plan to buy 40 percent of Shenzhen's Jutian Fund Management Co Ltd, becoming its largest shareholder, the Wall Street Journal reported.

Huaxin Securities Co will hold 30 percent of Jutian Fund, the report said.

The deal was approved by the CSRC last month although the commission did not make an announcement, the report added.

Jutian Fund Management Co has been renamed Morgan Stanley Huaxin Fund Management Co, it said.

CITIC Guoan Information Industry Co Ltd said earlier that it was to sell its entire 35 percent stake in Shenzhen-based Jutian Fund Management Co Ltd to Morgan Stanley International Holdings Inc for 64.695 million yuan ($9.24 million).

China currently allows foreigners to hold up to 49 percent of a fund management company.

Jutian Fund Management, with registered capital of 100 million yuan, manages two equities funds and a money market fund, with total assets under management of around 500 million yuan, according to its website.