Chinese officials are investigating the Shanghai offices of Morgan Stanley Huaxin Securities as part of a probe into a former official’s role in suspicion of taking bribes in August 2014.
As part of the probe, investigators from a regional prosecutors’ office in northeast China visited the Morgan Stanley joint venture to check the employment and salary details of Zhang Nan, the official’s son and an employee at the joint venture, reported Financial Times.
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In addition, the officials also wanted to verify details about the Zhang’s employment history, his salary details and other information.
Last month, Zhang Dongsheng, an official at China’s National Development and Reform Commission was probed by China’s top prosecutor over his alleged role in suspected corruption.
The allegation involves the issuance of corporate bonds between 2003 and 2006, which Zhang was responsible for approving.
Zhang’s son has been working with the fixed income unit of Morgan Stanley Huaxin Securities since 2011, a role that might have put him in contact with powerful economic planning agency where his father worked.
Bao Yi, the chief executive of Morgan Stanley Huaxin Securities, spoke to the authorities during their visit to the company’s offices.
Morgan Stanley said that Bao as well as Morgan Stanley Huaxin Securities are not subject to any investigation.
Morgan Stanley Huaxin Securities but said the company was taking necessary legal action including filing a report with the police to probe false rumors = claiming the company and its CEO are under investigation.
