Morgan Stanley has acquired Nam Tung Bank, a small commercial bank located in Zhuhai city in China, allowing the Wall Street firm to offer structured derivative products, home mortgages and corporate loans to Chinese customers, the Wall Street Journal reported. The deal, announced yesterday, comes as Chinese regulators have shut the door on foreign investors seeking to acquire local securities firms. Morgan Stanley, which has a 34 percent stake in China's biggest brokerage, has been seeking other ways to expand in China. It will now be better able to compete with banking rivals like Citigroup Inc. and  HSBC Holdings PLC, which have commercial-banking licenses and can offer some of the same products, said the paper. "This platform will allow us to provide a wider array of new product capabilities that are currently offered only by commercial banks with a presence within China," said Wei Christianson, Morgan Stanley's China chief executive. Obtaining the commercial-banking license allows Morgan Stanley to apply for subsequent permits for each product. The bank will have to apply to offer local-currency services.