Morgan Stanley Plans To Boost Stakes In China Ventures To 94%

On Wednesday, China Fortune – a Shanghai-based state-owned company – stated that it decided not to inject funds into the brokerage joint venture company. The move therefore reduced its ownership to 5.94% from the previous 10%.

However, the changes still require approval of the China Securities Regulatory Commission (CSRC) and other government authorities.

In July, Morgan Stanley acquired 39% of the joint venture from China Fortune, and therefore increased its ownership to 90%. As a result, the Wall Street bank rebranded the joint business venture as Morgan Stanley Securities China Co Ltd. The major US bank has had a presence in China since 1993 and got approval to establish the securities joint venture in December 2020.

Why Foreign Banks Expanding In China

The development by Morgan Stanley comes at a time when global banks and asset management firms have been racing to boost their stakes in their Chinese joint ventures since China allowed foreign-majority ownership in the financial services sector in 2019. As a result, multiple foreign lenders are eyeing for a bigger presence in mainland China. Particularly, global banks are targeting to increase their income within the Greater Bay Area in the country. The Greater Bay Area is the economic and business
 
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Hub

A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method used by cryptocurrency exchanges. This method provides transparency and allows traders to see the depth of the market. It also allows for more competitive pricing because there is no trading desk and no price manipulation. The disadvantage of this type of platform is that sudden market volatility can shift all traders to one side of the market or the other. There can be all buys and no seller or all sellers and no buyers. Liquidity Hubs ExplainedThis leads us to a liquidity hub, which platforms and brokers use to process each trade on their platform. When many liquidity providers join together to form a liquidity hub, they can also process trades whether they are more buys then sellers or vice versa. Deals can be processed faster for lower costs. Liquidity hubs allow brokers to deliver tight spreads into their traders and execute client orders at the best available prices from multiple liquidity providers. Liquidity hubs are traditionally hosted in premier data centers with a high concentration of trading participants such as Hong Kong, Chicago, or New York. These hub services provide full redundancies on the equipment and network supporting them, including the international pipe to primary and secondary data centers.

A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method used by cryptocurrency exchanges. This method provides transparency and allows traders to see the depth of the market. It also allows for more competitive pricing because there is no trading desk and no price manipulation. The disadvantage of this type of platform is that sudden market volatility can shift all traders to one side of the market or the other. There can be all buys and no seller or all sellers and no buyers. Liquidity Hubs ExplainedThis leads us to a liquidity hub, which platforms and brokers use to process each trade on their platform. When many liquidity providers join together to form a liquidity hub, they can also process trades whether they are more buys then sellers or vice versa. Deals can be processed faster for lower costs. Liquidity hubs allow brokers to deliver tight spreads into their traders and execute client orders at the best available prices from multiple liquidity providers. Liquidity hubs are traditionally hosted in premier data centers with a high concentration of trading participants such as Hong Kong, Chicago, or New York. These hub services provide full redundancies on the equipment and network supporting them, including the international pipe to primary and secondary data centers.
Read this Term that links China’s major cities, which include Hong Kong, Macau, Shenzhen, Zhongshan, Huizhou, Zhaoqing, Foshan, Guangzhou, Dongguan, Jiangmen, and Zhuhai. Two years ago, the region boasted a gross domestic product of US$1.7 trillion and hosted a population of 72 million people.