Thursday, November 27, 2008

Stake sale to Morgan Stanley vital strategy

HANGZHOU Trust has completed selling a 19.9-percent stake to Morgan Stanley, its strategic partner, and the sale marks a key step for the Chinese firm to enhance corporate governance and risk control, it said yesterday.

The trust firm, based in the capital of nearby Zhejiang Province, has completed the sale after it gained approval from the China Banking Regulatory Commission in April, the firm said on its Website yesterday.

"Inviting Morgan Stanley as our strategic partner is one of the key moves for us to improve corporate governance and strengthen risk control," Hangzhou Trust said.

Hangzhou Trust will ride on Morgan Stanley's global network to support its expansion as a leading asset management, wealth management and investment banking institution.

Foreign firms are looking to China's trust companies to secure a foothold in its financial services market. A foreign institution can hold not more than 20 percent of a Chinese trust firm and a combined stake cannot exceed 25 percent.

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