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The New York-based company is selling its Beijing unit to TPG Capital, KKR, the Government of Singapore Investment Corp, and Great Eastern Life Assurance Co. in a deal expected to close by the end of this year.
“We are proud of our history and successful track record in China,” Morgan Stanley CEO James P. Gorman said in a statement. “This includes our long partnership with CICC, which made us the first foreign securities firm to have a major stake in a China-based joint venture investment bank.”
Morgan Stanley entered into the joint venture with China Construction Bank and other Chinese and international financial institutions in 1995.
Gorman said that China “remains a critical part” of the US investment bank’s global strategy, however it will now focus more on further expansion of its domestic market platform.