Morgan Stanley Friday launched a securities joint venture in China, boosting its presence in the booming mainland market after selling its stake in China International Capital Corp last year.

The US investment bank said it will hold one-third of the tie-up with Shanghai-based Huaxin Securities, which will have the rest of Morgan Stanley Huaxin Securities Co Ltd -- mirroring moves by other Western investment banks.

The venture gives Morgan Stanley the chance to rebuild its presence in China after it sold its 34.3 percent stake last year in China International Capital Corporation, a leading mainland investment bank it helped found in 1995.

China "remains a major priority within our international growth strategy," Morgan Stanley chief executive James Gorman said in a statement.

The venture is "an important milestone that allows us to bring to China and to domestic clients many of Morgan Stanley's core capital market skills and competencies", Gorman said.

Foreign banks keen to grab a piece of China's fast-growing investment banking sector have been pairing up with Chinese players, despite regulations preventing them from holding a controlling stake in the ventures.

The value of stock offerings in China reached a record US$186.3 billion in 2010, up 24 percent from the previous record set in 2007, according to Hong Kong-based financial data provider Dealogic.

Morgan Stanley's foreign rivals including UBS, Royal Bank of Scotland, Goldman Sachs, Credit Suisse and Deutsche Bank already have securities joint ventures in the fast-growing market.

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