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Morgan Stanley in China

Morgan Stanley, one of the top giants of U.S. financial corporations, recently paired with China Construction Bank (CCB), one of China’s four sizeable commercial banks. This partnership is the first ever for China’s economic sector. It also marks a milestone toward banking reform. For Morgan Stanley, they are now notorious to be the first foreign bank to have a direct joint venture to dispose of China’s nonperforming loans.
It will also be China’s chance to gain Western banking aptitude and to cleanup its bad loans. Standard & Poor’s calculates the onslaught may cost $500 billion. The financial sector of China is still under government grip causing a sloth movement toward a free market economy.
Morgan Stanley now has a notch over its competition. It, undeniably, will have the first-entry edge. According to Stephan Newhouse, chairman of Morgan Stanley International, the venture is only “part of a step-by-step development in the opening of Chinas marketplace…The ...

Posted by: Sylvia Schiavoni

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