Morgan Stanley and J.P. Morgan cleared to set up China JVs

Morgan Stanley and J.P. Morgan have both received regulatory approval to set up securities joint ventures in China. The two JVs will be able to underwrite domestic equity and bond issues and will give the two US firms the same access to the Chinese market as Goldman Sachs, UBS, Credit Suisse and Deutsche Bank.

Before they can start operations, the new JVs to be set up by Morgan Stanley and J.P. Morgan together with their respective partners will also need a business licence a process that can take another three to six months. Typically that licence is viewed as a procedural issue, however. It is the approval to...