The trio now have an advantage over some of their largest Wall Street rivals after officials in charge of the world’s No. 2 economy promised on Friday to let foreigners take majority stakes in securities firms there — raising limits that had long frustrated U.S. and European bankers. JPMorgan Chase & Co. pulled out of a joint venture in China in 2016, and Bank of America Corp. also doesn’t have one.
In contrast, Morgan Stanley increased its stake in a partnership with Huaxin Securities to 49 percent earlier this year — the limit at that time — from about 33 percent, according to a person with knowledge of the deal. Goldman Sachs and Citigroup also have stuck by their ventures, in which they each hold 33 percent. And behind the scenes in recent months, Goldman has pushed for the ability to take control, a person with familiar with those talks said.