Morgan Stanley is planning to buy into China’s Jutian Fund Management as it tries to move into China’s wealth management sector.
Morgan Stanley has signed an initial agreement with Jutian Fund Management, and the Chinese fund has applied to regulators to seal the deal.
The fund plans to sell approximately 50 percent of the stake to foreign investors, including Morgan Stanley, in order to restructure its business, according to Reuters news agency.
It is currently unclear as to how much stake Morgan Stanley will control or how much it would pay, but it was revealed that a Chinese firm would join the US bank as a co-investor.
It is unclear as to whether the deal will win the regulatory approval of the Chinese officials, as foreign investors are not allowed to own any more than 50 percent in Chinese businesses.