Morgan Stanley and UBS Group AG are looking to increase their footprints in China. The news is being widely seen as the endorsement of booming a Chinese economy. Both the financial firms plan to boost their holdings in their respective joint ventures in China to permissible 49 percent.

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China had raised the limits for foreign banks' holdings in a joint venture to 49 percent in 2012. Earlier, the limit was fixed at one-third of the venture; however, foreign banks did not seem to be in rush to take advantage of the change in policies at that time.

It is speculated that China is mulling the policies to let foreign banks own majority stake in securities joint ventures. It is also likely that onshore equity issuance is going to see an uptick in the near future. Such a change in circumstances has prompted global banks to take advantage of such initiatives.

Benjamin Quinlan, CEO of consultancy Quinlan & Associates, said, "The China securities market is ripe for growth, and foreign investment banks will look to put more money there when it comes to boosting revenue. It's a long-term bet."

Morgan Stanley has partnered with Huaxin Securities in China. Morgan Stanley currently has 33.3 percent stake in the JV. Reuters reported that both parties have agreed to increase Morgan Stanley's holding to 49 percent.

UBS currently holds nearly 25 percent stake in UBS Securities in China, which was registered in 2006. The company had contributed towards the bailout of domestic brokerage firm Beijing Securities. Spokesperson for UBS declined to comment. 

Tagschina, Morgan Stanley, UBS