Morgan Stanley (NYSE:MS), JPMorgan (NYSE:JPM) Approved for China Deals

Morgan Stanley (NYSE:MS) and JP Morgan Chase (NYSE:JPM) have been given approval by Chinese regulators for joint ventures with Chinese companies, according to Canaccord Genuity.

They said, "On Friday, Chinese regulators approved local joint ventures with investment banks, which puts the banks a step closer to securing operations in China. The foreign banks are seeking the ability to underwrite equity and debt securities in the rapidly growing market. The approval will give J.P. Morgan a 33% stake in a partnership with First Capital Securities, a Shenzhen-based brokerage, which will hold the remaining 67% of the joint ventures. Morgan Stanley is partnering with Huaxin Securities, also knows as China Fortune Securities, with a similar ownership structure. Morgan Stanley recently sold its stake in China's premier investment bank, CICC. Under its new joint venture, Morgan Stanley will have more management control and will underwrite securities for the mainland market. The approval by the China Securities Regulatory Commission was expected, as more and more foreign banks enter into joint venture partnerships in China, which are subject to a mandatory ownership cap of 33%. UBS (NYSE: UBS), Credit Suisse Group (NYSE: CS) and Deutsche Bank (NYSE: DB) have similar ventures already in China."

JPMorgan was trading at $41.31, down $0.33, or 0.76 percent, as of 1:57 PM EST. Morgan Stanley was trading at $28.01, falling $0.19, or 0.67 percent.