While news of state-owned Chinese firms taking over British, American, African (etc...) firms continue to spread, one needs to dig a little deeper to see the bigger picture, a picture that might perhaps involve the small-time acquisitions and stake-buying into Chinese firms. As of 2005, China's financials have been careful in warding off new joint ventures from the state issued moratorium, but news has it that Credit Suisse and Morgan Stanley are more than one step closer in opening up China's lucrative investment banking market.
According to Bloomberg News, The Wall Street Journal, and the Editor at Seeking Alpha:
- Credit Suisse has signed "a memorandum of understanding" to form a JV with China's Founder Group, a Beijing-based conglomerate with $8 billion assets under management and also one of the largest brokerage houses in China.
- Morgan Stanley is partnering with Shanghai-based China Fortune Securities. Morgan Stanley already owns 34% of China International Capital Corp., a leading Chinese underwriter.
Comment Preview