China's CITIC silent on reported talks with Morgan Stanley
Chinese conglomerate CITIC declined comment on Thursday on a report that it was in talks with Morgan Stanley to buy the US-based investment bank.
By Agencies |
BEIJING: Chinese conglomerate CITIC declined comment on Thursday on a report that it was in talks with Morgan Stanley to buy the US-based investment bank.
Various reports indicated that CITIC was in talks to possibly acquire Morgan Stanley. "We heard about the news, but we're not clear about it," an official at CITIC Bank, part of the CITIC Group, said when asked to comment on the report. The official declined to be named.
State-controlled CITIC started out as a vehicle for attracting foreign funds for investment in China but has developed into a sprawling financial conglomerate with interests especially in banking and brokering. CITIC Securities, the brokerage arm of CITIC Group, earlier this year abandoned plans for an alliance with US investment bank Bear Stearns.
The US Federal Reserve has been encouraging the Chinese to invest in US financial institutions, the sources said. China's sovereign wealth fund, China Investment Corporation, already owns 9.9 per cent of Morgan Stanley.
Financial shares came under especially heavy selling pressure on Wall Street on Wednesday as investors fretted on further failures after Lehman Brothers' huge bankruptcy on Monday and the near-meltdown at AIG.
Various reports indicated that CITIC was in talks to possibly acquire Morgan Stanley. "We heard about the news, but we're not clear about it," an official at CITIC Bank, part of the CITIC Group, said when asked to comment on the report. The official declined to be named.
State-controlled CITIC started out as a vehicle for attracting foreign funds for investment in China but has developed into a sprawling financial conglomerate with interests especially in banking and brokering. CITIC Securities, the brokerage arm of CITIC Group, earlier this year abandoned plans for an alliance with US investment bank Bear Stearns.
The US Federal Reserve has been encouraging the Chinese to invest in US financial institutions, the sources said. China's sovereign wealth fund, China Investment Corporation, already owns 9.9 per cent of Morgan Stanley.
Financial shares came under especially heavy selling pressure on Wall Street on Wednesday as investors fretted on further failures after Lehman Brothers' huge bankruptcy on Monday and the near-meltdown at AIG.
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