Morgan Stanley gains coveted China access

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Morgan Stanley's October 2 2006 acquisition of China's Nan Tung Bank resulted in the US investment bank gaining a commercial banking licence in China,…

Morgan Stanley's October 2 2006 acquisition of China's Nan Tung Bank resulted in the US investment bank gaining a commercial banking licence in China, allowing it to apply to do business in renminbi-denominated products. Normally, an overseas bank must operate in China for at least five years and is subject to tough regulations in order to secure a commercial banking licence before being able to conduct business in local currency.

As part of its Nan Tung acquisition, Morgan Stanley gained a commercial banking licence ahead of its US banking rivals, which include Goldman Sachs, Merrill Lynch and Lehman Brothers.

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