This is awesome news for Morgan Stanley.
China Investment Corp. just named Morgan Stanley’s John Mack a member of the $300 billion sovereign-wealth fund’s international advisory council, says the Wall Street Journal.
Morgan Stanley was already somewhat close to CIC after they bought a minority stake in the U.S. bank in 2007, but now that Mack is on board with an advisory committee, they’re going to be even better positioned with the bank.
The bad news: His term advising will apparently last 2 years… and the advisory committee meets annually.
But bottom line, this is good news. This is a crucial 2 years for China. CIC is one of the Chinese banks that are making all the big deals right now. Plus, CIC is connected to the government because it manages part of the People’s Republic of China’s foreign exchange reserves.