MORGAN Stanley moved closer to taking a controlling stake in its Chinese securities joint venture after picking up a 2 percent share for US$54 million, exchange filings show.

Huaxin Securities signed an equity transfer contract Thursday to move the 2 percent stake in Morgan Stanley Huaxin Securities to the U.S. bank, according to a statement dated Friday filed to the Shanghai Stock Exchange by Huaxin’s parent, Shanghai China Fortune Co.

Morgan Stanley, which currently owns 49 percent of the joint venture, was the only bidder, the filing said.

An unnamed buyer will pay 376.2 million yuan (US$54.24 million) for the 2 percent stake in Morgan Stanley Huaxin Securities, according to a separate notice on the Shanghai United Assets and Equity Exchange website dated Thursday.

The transfer still has to be approved by the China Securities Regulatory Commission (CSRC), and the joint venture’s business registration license must be changed by the Ministry of Commerce to reflect its foreign ownership, the filing added.

Morgan Stanley declined to comment.

Morgan Stanley Huaxin Securities, whose offerings include underwriting and sponsoring of stock and bond sales, told the CSRC earlier this year about plans to change its equity holdings, Reuters reported in June, citing people with direct knowledge of the matter.

The outcome of Sino-U.S. trade talks could, however, impact the approval timeline, the people said at that time, declining to be identified. (SD-Agencies)