Investigators from a regional prosecutors’ office in northeast China called at the offices of the Morgan Stanley joint venture to verify the employment and salary details of Zhang Nan, the official’s son and an employee at the joint venture, according to several people familiar with the matter.
In August, China’s top prosecutor put Zhang Dongsheng, an official at China’s National Development and Reform Commission, under investigation for suspected corruption. According to Chinese media reports, the allegations relate to the issuance of corporate bonds between 2003 and 2006, which Zhang was responsible for approving.
Zhang’s son has worked in the fixed income department of Morgan Stanley Huaxin Securities since 2011, a position that would probably have put him in contact with the 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, the FT further reported.
The company said Mr Bao is not under investigation, and Morgan Stanley Huaxin Securities also stated it is not under any investigation.
Zhang Dongsheng retired from the NDRC several months ago. Since 2007 he had been the head of the employment and income distribution division at the agency, according to Chinese media reports.