First Dubai, now China - US selling out

Morgan Stanley wrote down its subprime-infected mortgage holdings by a greater-than-expected $9.4 billion and received a $5 billion cash infusion from state- controlled China Investment Corp.

The second-largest U.S. securities firm rose 4.2 percent in New York Stock Exchange composite trading. The ``significant capital raise'' and writedowns may suggest to investors that Morgan Stanley has put the worst of its subprime losses behind it, Jeffery Harte, an analyst at Sandler O'Neill & Partners LP, wrote in a note today