WASHINGTON (AP) - Two major companies in a prominent $1.4 billion Asia investment fund managed by banking giant Morgan Stanley failed to file their financial statements on time, freezing trading in their stocks. Such delays are generally considered worrisome for a company's investors, which include U.S. pension funds and college endowments.

WASHINGTON (AP) Two major companies in a prominent $1.4 billion Asia investment fund managed by banking giant Morgan Stanley failed to file their financial statements on time, freezing trading in their stocks. Such delays are generally considered worrisome for a company's investors, which include U.S. pension funds and college endowments.

The companies Tianhe Chemicals Group Ltd. and Sihuan Pharmaceutical Holdings Group Ltd both blamed the delay on incomplete audits. Though both companies could eventually earn auditors approval, accounting experts say that such holdups are a worrying sign.

Accounting trouble at the companies would be a black eye for Morgan Stanley, which pitched investors on its ability to improve the companies' management.