Morgan Stanley Investment Management (IM) has received approval from China Securities Regulatory Commission (CSRC) to own a full controlling stake in its mutual fund joint venture (JV) in China.

The approval allows Morgan Stanley IM to raise its stake in the JV, called Morgan Stanley Huaxin Funds, from 49% to 100%.

The transaction requires approval for business registration and other rules set by Chinese regulatory authorities.

Morgan Stanley head of investment management Dan Simkowitz said: “Wholly-owning our China mutual funds business will allow us to more fully serve this dynamic asset and wealth management market and adds a significant pillar of growth to our global investment management franchise.

“As we further invest in our onshore platform, we will bring over our four decades of industry experience and global research expertise in sustainability and diversified portfolio management to help domestic clients achieve their investment goals.”

Based in Shenzhen, Morgan Stanley Huaxin Funds was launched as a JV in June 2008.

The JV uses mutual funds and separated management accounts to offer various investment management solutions to retail and institutional customers.

It leverages fixed income, active equity, quantitative equity along with multi-asset investment to serve its clients.

Morgan Stanley CEO of Asia Gokul Laroia said: “The Firm has been active in China for almost three decades and we are committed to our goal of building a fully integrated financial services firm to meet the evolving needs of domestic and global clients.

“Today’s announcement is an important strategic milestone along this path.”

The latest development follows a CNBC report in December last year about Morgan Stanley reducing around 2% of its workforce across the globe.