Morgan Stanley has applied to buy up to 10 percent of Chinatrust, Taiwan's largest credit card issuer, local media reported on Monday.

Both of Taiwan's major business dailies reported Morgan Stanley had submitted an application with the economics ministry, and is prepared to invest T$20 billion or more ($610 million).

Shares of Chinatrust jumped as much as 3.91 percent when trading began on Monday, and were up 2.93 percent later in the session.

Chinatrust's chief strategy officer said the company has been in talks with all the top tier private equity funds and hedge funds and commercial banks about a stake sale, but would not name any specific companies.

A Morgan Stanley official declined to comment on the reports.

The economics ministry committee was optimistic about Morgan Stanley's application after reviewing it, the Chinese language Commercial Times reported, citing an unnamed ministry official.

Chinatrust's controlling stakeholders have previously said they would welcome a foreign investor to buy a strategic small stake in the company, the Economic Daily reported.

Investment Morgan Stanley Citigroup