Jianyin cleared to transfer CICC stake to China Huijin: report

SHANGHAI (Reuters) - China Jianyin Investment Securities has obtained regulatory approval to transfer its 43.35 percent controlling stake in China International Capital Corp (CICC) to its parent Central Huijin Investment Co, the Shanghai Securities News reported on Tuesday.

Jianyin, which also controls Hong Yuan Securities 000562.SZ is transferring the CICC stake to conform to Chinese rules that bar a company from controlling two brokerages, the official newspaper said.

Huijin, the domestic investment unit of China's $300 billion sovereign wealth fund, would own stakes in five brokerages after the CICC stake transfer, the newspaper said.

Morgan Stanley (MS.N) is selling its 34.3 percent in CICC, China's biggest investment bank, and had been in late stage talks with private equity firms KKR KKR.UL and TPG TPG.UL, sources familiar with the deal told Reuters in March.

(Reporting by Samuel Shen and Jacqueline Wong; Editing by Jonathan Hopfner)