China Investment Corp Sells $1.6 More Morgan Stanley (NYSE: MS) Shares

China Investment Corp has sold another $1.6 million shares in Morgan Stanley (NYSE: MS), according to a regulatory filing released on Wednesday.

During the past three weeks, China’s sovereign wealth fund has sold 25.5 million shares of the U.S. investment bank for $692.4 million. Many believe that CIC is selling its shares to keep its stake in Morgan Stanley (NYSE: MS) below 10% to avoid closer scrutiny from regulators.

In the most recent sales, which occurred on Monday, CIC reported sales of 1.6 million shares for $43.9 million at an average price of $27.42, according to an SEC filing.

The firm now owns 150.8 million shares of Morgan Stanley (NYSE: MS) and will take possession of about 116.1 million shares when the roughly $5.6 billion worth of principal in mandatory convertible notes will convert to common stock, which will happen on August 17th.

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. It operates through three business segments: Institutional Securities, Global Wealth Management Group and Asset Management. In May 2010, Invesco Ltd. acquired the Company’s retail asset management business. During the year ended December 31, 2009, it disposed its former real estate subsidiary, Crescent Real Estate Equities Limited Partnership. On May 31, 2009, the Company and Citigroup Inc. (Citi) consummated the combination of the Company’s Global Wealth Management Group and the businesses of Citi’s Smith Barney in the United States, Quilter in the United Kingdom and Smith Barney Australia. The combined businesses operate as Morgan Stanley Smith Barney Holdings LLC.

Shares of Morgan Stanley (NYSE: MS) traded down 0.91% on Thursday hitting $26.21 during mid-day trading.