US approves sale of Morgan Stanley stock to China

– The Federal Reserve authorized today the request by the Chinese company China Investment Corporation (CIC), with headquarters in Beijing, to indirectly acquire up to 10% of the shares of Morgan Stanley. The US central bank has said the Chinese government-backed wealth fund can have voting rights on Morgan Stanley operations.

In a statement released today, the Fed said that CIC has said “it does not intended to control or influence the management of Morgan Stanley and its indirect investment is a passive investment.”

CIC, according to the U.S. monetary authority is a sovereign wealth fund controlled by the Chinese Government for investment of their foreign exchange reserves.

Morgan Stanley, based in New York, is an investment bank with a U.S. $626,000 million dollars in assets.

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