Morgan Stanley buys stake in Chinese trust bank

SHANGHAI: US banking giant Morgan Stanley has completed a deal to buy a 19.9 per cent stake in a medium-sized Chinese trust bank based in the eastern city of Hangzhou, the two companies said on Wednesday.

The purchase of Hangzhou Industrial and Commercial Trust company is part of Morgan Stanley's efforts to tap into China's growing financial market, they said in a joint statement.

"The investment further demonstrates Morgan Stanley's willingness and determination to expand its business in the China market," Sun Wei, chief executive of Morgan Stanley China was quoted as saying in the statement.

The companies did not specify how much Morgan Stanley paid for the stake, but the official Shanghai Securities News reported the purchase cost at about 200 million yuan (29.3 million dollars), citing senior company officials.

A Hangzhou Trust official, who spoke on condition of anonymity, said the figure was accurate, but declined to give further details.