Morgan Stanley has been dragged into a risky Chinese court battle over a hedging contract with a local company, China Haisheng Juice Holdings, extending a case it is fighting in the UK. While the sums involved are small – relating to currency hedges worth just tens of millions of dollars – a legal battle in China could be prolonged, warned lawyers. In London, Morgan Stanley is pursuing $26m it alleges it is owed after Hai-sheng failed to post collateral relating to the hedges; in China, Hai-sheng is suing the US bank for allegedly mis-selling the hedging contracts.
