BEIJING, May 28 (Reuters) - China's Vice Premier He

Lifeng told Morgan Stanley Co-President Daniel Simkowitz

that Beijing welcomes more U.S. financial institutions and

long-term capital to deepen cooperation, the official Xinhua

news agency reported.

He said at a meeting in Beijing that U.S. financial

institutions, including Morgan Stanley ( MS ), are welcomed to actively

participate in the development of China's capital market.