China Investment Corp has let go of $1.6 million worth of
shares in
Morgan Stanley, in a move that is seen to be in compliance with
regulatory rules.

The Chinese sovereign wealth fund has already sold 25.5
million of its shares in the US bank for $692.4 million over the last three
weeks. The most recent sale happened early in the week, where 1.6 million
shares were sold for $43.9 million, reducing CIC's interest to 8.9 per cent.

At present, CIC owns 150.8 million shares in Morgan Stanley
and is bound to get 116.1 million shares more after $5.6 billion in principal
mandatory convertible bonds it bought in December 2007 convert to common stock
in 17 August. The Chinese firm has to keep its holdings under 10 per cent in
Morgan Stanley to avoid regulatory scrutiny.