Morgan Stanley Gets Green Light to Establish Futures Unit in China

Updated: 26 May 2023

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According to reports, Morgan Stanley, a US-based financial institution that provides a range of investment banking, securities, investment management and wealth management services, has finally received permission to open a new branch in China.

The country’s securities watchdog, the China Securities Regulatory Commission (CSRC), said earlier today, May 26, it had allowed Morgan Stanley to set up a China futures company.

The firm will be based in Beijing, and with it, Morgan Stanley will help open up the country’s futures market.

CHINA FINANCE MINISTRY TO REOPEN 73 BLN YUAN OF 3-YEAR BONDS ON MARCH 23 #News #Forex #CHINA #YUAN #BOND #FINANCE

— Capital Hungry (@Capital_Hungry) March 16, 2022

According to the regulator’s statement, this is only the first step. According to the Commission,

In the next step, the China Securities Regulatory Commission (CSRC) will continue to deepen the opening up of the futures market and support qualified overseas institutions to invest in domestic futures companies.

Earlier this year, in April, Morgan Stanley said it was looking forward to launching a new future company in China.

However, the company first had to wait for China’s regulators to accept its application. Now that this has finally happened, Morgan Stanley is clear to proceed to the next step.

China’s Central Television Plays Crypto Ads

Another interesting development in China recently saw a segment on Chinese state television about cryptocurrencies. Given China’s general unfriendly stance toward crypto, the cryptoverse was quite surprised.

Binance’s CEO, Changpeng Zhao, noted that similar reporting had triggered bull runs in the past. This does not guarantee that a new bull run will happen, but it remains a possibility.

CZ said on Twitter that CCTV (China Central Television) broadcasted cryptocurrencies and that he believes it to be a “big deal.”

Zhao added that the Chinese-speaking communities are buzzing and that similar coverages in the past have led to bull runs. He was quick to add that this is not financial advice and that the past doesn’t necessarily predict the future.

The segment he referred to aired on May 23, focusing on a new mandatory licensing scheme for Hong Kong-based crypto trading platforms.

In addition, the segment said that firms that offer crypto-related services need to apply for a license from the Hong Kong Securities and Futures Commission (SFC) by June 1st at the latest.

On that date, the new crypto guidelines will come into effect in Hong Kong.

The Chinese media outlet, CCTV, has just broadcasted news about Hong Kong’s upcoming crypto adoption!?@cz_binance calls this a “big deal”, stating that “coverages like these led to bull runs in the past”

We’ve translated the coverage into English, so you can see yourself what… pic.twitter.com/GJcjVRFtIN

— Crypto Hub? (@CryptoHub210) May 24, 2023

Another interesting detail is that China’s Finance Ministry intends to reopen 23 billion yuan ($3.25 billion) of 50-year bonds only one day after the new guidelines come into effect, on June 2.

In other words, there are multiple significant finance-related events taking place in China right now, most of which could have a strong impact on its economy.

Hong Kong itself is becoming a massive crypto hub, starting with multiple crypto conferences scheduled to take place this year.

Meanwhile, on the Chinese mainland, crypto mining, trading, and most other crypto-related activities remain banned after the country issued a total crypto ban in 2021.

This was also the occasion when it forced Bitcoin miners to leave and seek a new home elsewhere in the world.

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