Hong Kong: Morgan Stanley appointed Chief Economist Stephen Roach, who last week said China must step up efforts to cool its economy, as Asia chairman.
Roach, 61, replaces Alasdair Morrison, who is retiring, according to an e-mailed statement. The appointment is effective in June and Roach will move to Hong Kong in September, the release said. He joined Morgan Stanley in 1982.
As New York-based chief economist, Roach followed China closely, often highlighting the dangers of the nation’s export- and investment-driven model. In an 20 April report, he said Premier Wen Jiabao will likely succeed in cooling an economy that grew 11.1% in the first quarter.
“China is at a critical juncture in its extraordinary development saga — needing to make the transition from an export- and investment-led growth dynamic to more of a consumer-led economy,’’ Roach said in an e-mailed response to questions.
“I am confident that China is up to this daunting challenge — but it will take both time and determination to pull it off.’’
Morgan Stanley has been expanding in Asian markets including China, India, Korea and Japan. The firm last month announced it will pay $425 million (Rs1,767 crore) to buy out its joint venture in India with JM Financial Ltd, opting to go it alone in the world’s second- fastest-growing major economy.
On 18 April, the world’s second-largest securities firm said it hired Blair Pickerell from HSBC Holdings Plc to head its Asian investment funds unit.
Roach, who has a Ph.D. in economics from New York University “is an intellectual leader on many global economic issues, including those related to China,’’ Chief Executive Officer John Mack said in the statement. “He will bring a combination of seniority, strategic thinking, and local knowledge to this important role.’’