The head of China’s $400 billion sovereign wealth fund has offered in principle support for injecting money into the struggling Eurozone but notes any commitment of funds must be an investment rather than a political decision.
The China Investment Corporation deployed nearly 30 per cent of its cash, or $35.7 billion, in 2010, mostly into private equity, real estate, infrastructure and other direct investments with its alternatives allocation increasing from 6 to 21 per cent in the year.
Sovereign wealth funds will consider the implications of capital flows and the build-up of foreign exchange assets in Beijing next week at the third annual SWF international forum.
The Chinese Government is expected to provide details this month of its new fund – being dubbed the “Industrial CIC” or” CIC 2” – which will centralise oversight of various state-owned businesses.
Sovereign wealth funds have captured the imagination of investment professionals and politicians alike over the past few years. Perhaps because of the large sums of money at their disposal, there has been a degree of wariness about the intentions of some. Most, after all, are controlled by governments.
Stronger governance, management infrastructure and risk management have steered the China Investment Corporation through the global financial crisis and emerge with a large buffer of cash, the annual report says.
The institutional usage of exchange-traded funds is booming around the world, putting paid to any lingering doubt that the vehicles are meant for retail investors. Michael Bailey reports.
The $300 billion China Investment Corporation (CIC) aims to sidestep official barriers to investing in the US by offloading its stakes in home-country banks. The proposal would see the sovereign wealth fund (SWF) relinquish responsibility for the Chinese government’s majority stakes in the country’s largest banks, such as Bank of China, the Financial Times reported.... Read more »
The International Forum of Sovereign Wealth Funds held its second annual meeting in Sydney last week. www.top1000funds.com reports on the meeting’s outtakes – including asset allocation and risk management implications.
China will continue to encourage capital flows into the country that emphasise technology and environmental impact, according to Jin Liqun, chairman of the board of supervisors of the $200 billion China Investment Corporation (CIC).
China Investment Corporation has for the first time revealed its investment strategy. SONIA HAN reports that the Chinese sovereign wealth fund has accelerated its investment program in open-market products and industries such as mining, energy and real estate. The CIC is seeing value after the crisis but is also looking to limit portfolio risk.