Morgan Stanley and UBS Group are planning to raise their stakes in China investment-banking joint ventures, the Wall Street Journal reports, citing people familiar with the matter.
The two foreign financial institutions intend to increase their stakes in the China units to 49 percent, the maximum permitted by mainland authorities, according to the report.
Morgan Stanley currently owns 33.3 percent in its China joint venture, while in the case of UBS the ownership stake stands at 24.99 percent.
Morgan Stanley is expected to boost its stake in the next couple of months after it secures regulatory approval, while UBS hopes to complete its plan within the year, sources told the Journal.
Global banks were initially allowed to own no more than one-third of the joint ventures, a threshold that was raised to 49 percent in 2012.
The plans of Morgan Stanley and UBS signal their commitment to developing more business in the country.
Under a US-China trade and investment framework discussed last year, Beijing was considering allowing Wall Street firms to run their own investment-banking businesses in China, the Journal reported earlier.
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