Beijing’s sovereign wealth fund China Investment Corp (CIC) will spend US$1.2 billion to increase its stake in Morgan Stanley, the South China Morning Post reported. Morgan Stanley announced on Monday that it would raise US$2.2 billion in an attempt to repay the US$10 billion it received from the US government in capital injections. CIC will buy 44.7 million shares of the 80.2 million on offer at US$27.44 each. The purchase will bring CIC’s stake in Morgan Stanley to 9.88% from its current 7.89%. The Chinese sovereign wealth fund, in a statement on its website on Monday, said the decision was driven by its “excellent relationship” with Morgan Stanley. CIC invested US$5.6 billion in the US investment bank in 2007, only to see the value of its fall by one half.