Morgan Stanley (MS.NYSE) has received Chinese government approval to sell its stake in China International Capital Corp (CICC), bringing the US group one step closer to establishing a new investment banking joint-venture in the country, the Wall Street Journal reported. The China Securities Regulatory Commission said in a statement that it had approved CICC’s planned shareholding change involving a stake of more than 5% in the company. Morgan Stanley plans to sell its 34.3% stake in CICC for about US$1 billion to a group of investors including Kohlberg Kravis Roberts & Co and TPG Capital, which have agreed to purchase about 11% each. The sale, however, still requires further approvals from the Chinese government. Morgan Stanley has been trying to sell off its stake since 2007. The US firm has already identified another Chinese partner for a new securities joint venture in which it hopes to have more influence.
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