MORGAN Stanley and JPMorgan Chase & Co. are moving closer to control of their joint ventures in China.

The Chinese partner of Morgan Stanley’s securities joint venture said Tuesday it is selling a 2 percent stake for at least 376 million yuan (US$55 million) and any potential buyer will have until July 29 to submit a bid.

On Monday, JPMorgan’s local partner said it will cede control in its asset management venture for 241 million yuan.

The moves come after the world’s two largest economies agreed to resume trade negotiations over the weekend, with U.S. President Donald Trump saying he will hold off imposing an additional US$300 billion in tariffs.

As China remains steadfast in its commitment to level the US$44 trillion financial industry playing field, Wall Street banks are eager to gain a stronger foothold, even at hefty prices.

The minimum asking price in Morgan Stanley’s securities venture is nearly 15 times the appraisal value, according to calculations based on numbers in the filing, while for JPMorgan’s fund venture, the price represents about a 33 percent premium.

Both U.S. banks, which currently hold a 49 percent stake in their respective ventures, have indicated they’ll raise the interest to the maximum 51 percent allowed.

The JPMorgan transaction “looks rather rich, whether including or excluding the premium for control,” asset management research firm Z-Ben Advisors Ltd. said in a note July 1. “Global managers should expect the deal’s metrics will be applied to all that follow.”

China is seeking to encourage international investors to become more involved in its financial sector and has removed some limits on foreign ownership of financial institutions as well as taking steps to ensure local bonds can be bought by global funds. (SD-Agencies)