Huaxin Securities holds a two-thirds stake in the joint venture while Morgan Stanley owns a one-third interest. The registered capital of the joint venture will be CNY1.02bn ($157.5m).
The newly established firm will be named Morgan Stanley Huaxin Securities.
Wang Wenxue, chairman of Huaxin Securities, has been named chairman of Morgan Stanley Huaxin Securities, and Yang Kai, a managing director of Morgan Stanley, as CEO.
The scope of business includes underwriting and sponsorship of shares in the domestic China market, as well as underwriting, sponsorship and proprietary trading of bonds.
According to Hong Kong-based financial data provider Dealogic, the volume of initial public offerings on mainland China’s exchanges in Shanghai and Shenzhen totaled $72.1bn last year, surpassing Hong Kong and the US for the first time.
Goldman Sachs, UBS, Credit Suisse, Royal Bank of Scotland and Deutsche Bank already have securities joint ventures in the fast-growing Chinese.
Last week, Citigroup also entered into agreement with Orient Securities, to venture into booming Chinese securities market.
