Morgan Stanley Queried by Congressman Over China Gold Miner IPO

Morgan Stanley is facing scrutiny from the Republican head of the US House China committee over whether the bank performed enough due diligence in underwriting the $3.7 billion Hong Kong initial public offering of Zijin Gold International Co. in September.

In a letter to Chief Executive Officer Ted Pick dated Nov. 13, Representative John Moolenaar requested more information from Morgan Stanley including documents and communications related to the transaction, which at the time was the world’s largest such offering since May.

At issue is how the transaction may have helped Zijin Gold’s parent, Zijin Mining Group, which is on ...