China Likes Morgan Stanley

Nine months after announcing a tentative deal, Morgan Stanley & Co. has finally won permission from Beijing to start China's first international investment bank. Coming at a time when U.S.-China relations are strained over Taiwan and imprisoned activist Harry Wu, the decision to grant a license to China International Capital Corp. shows that well-connected American companies can still get things done. Morgan Stanley, which will take a 35% stake, has some powerful friends in Beijing. Its main partner is the state-run People's Construction Bank of China. Capitalized at $100 million, CICC will focus on infrastructure projects.

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