China Investment Corp, the country's sovereign wealth fund, said it is buying into a $2.2 billion common stock offering by Morgan Stanley because it is confident in the Wall Street bank's prospects.
CIC is buying 44.7 million shares of the 80.2 million shares being offered for $1.2 billion, raising its stake in Morgan Stanley back to about 9.86 percent.
That was the size of the original stake CIC took in Morgan Stanley in 2007 for $5.6 billion. It was subsequently diluted to about 7.68 percent when Morgan Stanley sold stock to Mitsubishi UFJ Financial Group last October.
