China Investment Corp Continues Divestment of Morgan Stanley (NYSE: MS) Stock

China Investment Corp unloaded another $125 million shares of Morgan Stanley (NYSE: MS), according to a filing with the U.S. Securities and Exchange Commission which has been widely reported by the press.

The stock sale was made in two separate transactions following a $138.5 million sale of 5.1 million shares last week. China Investment Corp had a stake in Morgan Stanley of more than 10% during the month of June and ma have sold some of the shares to avoid scrutiny from regulators because ownership above the 10% mark could mean additional disclose requirements for the firm.

In its latest filing with the SEC, dated on Tuesday July 27^th, CIC said that it sold $1.875 million shares at $27.05 each on July 3^rd and another 2.75 million shares at $27.04 on Monday for a total of $4.625 million shares. China Investment Corp, which began buying Morgan Stanley shares in 2007, now owns 166.5 million shares of Morgan Stanley common stock.

The Wall Street Journal wrote that the sovereign wealth management fund now has an ownership stake of about 9.5% in Morgan Stanley (NYSE: MS) based on calculations made which included various transactions made by CIC during the last couple of years. The Journal also said that CIC may need to continue selling Morgan Stanley stock to keep its ownership stake under 10% because of certain mandatory convertible units that the stock owns which will increase its common stock ownership stake.

Morgan Stanley is a financial holding company. Through its subsidiaries and affiliates, the Company operates as a global financial services company that provides its products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals.

Shares of Morgan Stanley (NYSE: MS) traded flat at $26.99 on Friday by 3:55 ET.