Morgan Stanley is soliciting bids for its 34.3% stake in a joint-venture investment bank it formed in China in 1995, said three people familiar with the situation.

Potential bidders for the stake in China International Capital Corp. include U.S. private-equity firms, said the people, who spoke anonymously because the bidding process is confidential.

The stake could be worth $1 billion, according to one of the people.

John Mack, Morgan Stanley's chairman and chief executive officer, is seeking to sell the firm's CICC stake so that the company can build a brokerage in China that it controls.

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