GUANGZHOU (Fund China) – Recently, the peple of China Securities Regulatory Commission confired that Jutian Fund Management Company has been bought by Morgan Stanley and Huaxin Securities, and has changed its name to Morgan Stanley Huaxin fund management co., Ltd.

After buying, Morgan Stanley will hold 40 percent of the stocks of this fund management company and become its largest shareholder, Huaxin securities owned 30 percent of the stocks.

Jutian Fund management company’s registered capital is 100 million yuan, its shareholders include Jutian Securities co., Ltd, CITIC National Security Information Industry Co., Ltd, Hantang Securities co., Ltd, Shenzhen Investment Holdings co., Ltd and Zhejiang Zhongda Holdings co., Ltd.

On October 24 last year, CITIC National Security announced that company decided to transfer the 35 percent of the stocks of Jutian Fund Management Co. Ltd to Morgan Stanley, the price is 64.695 million yuan, about 69.3 percent more than Jutian fund’s net assets.

Hantang securities also officially entered insolvency proceedings in September 2007.

At present, in accordance with relevant regulations, the ceiling of the stocks of foreign investment in joint venture fund management company is 49 percent.

As early as the end of last year, Huaxin Securities and Morgan Stanley has signed cooperation agreements, Morgan Stanley become its sole partner of securities in China, and they plan to set up joint venture securities company, which is specially deal with investment banking business. According to the formation demand of China Securities Regulatory Commission on joint venture Broker, the Chinese side in this industry must reach the middle level, but now, Huaxin Securities has not sponsors and has not carried out related business.

Except Morgan Stanley and Huaxin Securities, Credit Suisse group and Founder Securities, Citi group and Zhongyuan Securities also signed a similar cooperation agreement to set up joint-venture investment bank, but the China Securities Regulatory Commission Has not yet formally launched to approve the joint venture brokerage.

Copyright Fund China 2009.

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