China is 'a gift that keeps giving,' says Morgan Stanley CEO
- China is positive for world economy growth, says Morgan Stanley Chairman and CEO James Gorman
- The bank will increase its stake in a China joint venture because of new allowances in the country
While there may be concerns about debt in China, the world's second-largest economy remains a tremendous engine for global growth, Morgan Stanley's chairman and CEO told CNBC.
With domestic economic growth at around 6 percent and a $10 trillion to $11 trillion economy, the country "is a gift that keeps giving to world economic growth," James Gorman said Thursday.
And on worries that concerns about the country's rising debt levels, Gorman said it's important to keep things in perspective: "China also has probably the highest savings rate in the world —you've got to look at the total context."
He also echoed the bullish sentiment of Gokul Laroia, Asia Pacific co-CEO of Morgan Stanley, who told CNBC Wednesday that he's positive on its business in China as initial public offering activity there picked up after slowing the year before.
Also on his China outlook, Gorman said Morgan Stanley is set to increase its stake in Morgan Stanley Huaxin Securities from the current 49 percent to the new limit of 51 percent — a controlling stake.
Last week, the Chinese government said it will raise foreign ownership limits in domestic financial firms.
"That's a sign of China opening up and behaving and acting like other major economic countries around the world," Gorman added.