Private equity firms Kohlberg Kravis Roberts and TPG Capital are close to signing a deal to pay a total of more than $1bn (€736m) for Morgan Stanley's stake in one of China's top investment banks, China International Capital Corporation, according to people familiar with the situation.

The purchase would pair two giants of the private equity world together with a major player in China's fast-growing capital markets. It would also free up Morgan Stanley to pursue its long-time ambition of entering into a new Chinese securities venture over which it can exercise greater influence.