Fujian-based Nanfu Batteries - a mid-sized alkaline battery-maker in which the private equity arm of American investment bank Morgan Stanley has a minority stake - plans to list in Hong Kong. The Nanping city-based company is understood to be the world's fifth-largest alkaline battery producer, financial Web site Infocastfn.com reported. The company booked turnover of 715 million yuan (about HK$670 million) and a net profit of 75 million yuan last year, with 150 million units of its total production of 614 million batteries exported. A Morgan Stanley spokesman said the investment bank's stake in Nanfu was acquired in 1999. She would not disclose the size of the investment. A Nanfu spokesman declined to reply to any media inquiries. According to market sources, Nanfu is still in an early stage of preparation for a listing, and Morgan Stanley may not be heavily involved as its core investors are likely to be different from the target investors of Nanfu. No timetable has been set for the proposed listing. Disclosure of the Nanfu investment comes after Morgan Stanley announced last month it had bought a 15.5 per cent stake in Singapore-listed leather upholstery maker HTL International Holdings via the purchase of S$20 million (about HK$89.33 million) in convertible preference shares. The acquisition was conducted by investment funds managed by Morgan Stanley Private Equity, which has invested more than US$7 billion since 1985 in diverse sectors, including telecommunications, healthcare, financial services, technology and energy. Morgan Stanley also has a 7.6 per cent stake in Ping An Insurance, after obtaining special permission from Beijing in 1996, when the financial sector was off limits to foreigners. It also has a stake in locally listed Hengan International Group - China's largest manufacturer of sanitary napkins.