Morgan Stanley (NYSE:MS), UBS Group AG (SWX:UBSG) are set to raise holdings in their separate Chinese securities joint ventures to 49%, people with direct knowledge of the developments said. Morgan Stanley and its Chinese joint venture partner, Huaxin Securities, have agreed to a proposal to raise the U.S. investment bank's stake in the venture to 49% from 33.3%, two people with knowledge of the plan said. The stake increase is awaiting approval from the Chinese securities regulator, they said.

UBS is also in talks to raise its stake in UBS Securities to 49% from 25%, two separate sources told Reuters. All the people decline to be named as the details of the stake hikes were not public yet. Spokesmen for Morgan Stanley and UBS declined to comment.