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 percent, the maximum allowed under current regulations, the sources said.

    UBS owns about 25 percent of its China securities firm, which has a license to trade domestic shares. Morgan Stanley holds 33 percent of its venture, which mostly provides investment banking services and research.

    For UBS, “talks are still under way, we can’t tell you much more than that,” chairman Axel Weber said yesterday in Shanghai. “We have a strong interest in increasing our footprint and our presence in China. We want to build a long-run, steady presence in China.”

    Foreign firms have been allowed to own up to 49 percent of the joint ventures since 2012, when China raised the cap from 33 percent, and an increase in profits generated in China in recent years encouraged both companies to move forward with their plans, the sources said. Not all overseas banks have taken that opportunity, deterred by losses or a desire for more control.

    (SD-Agencies)