CIC No.2 set for take-off

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.According to a report in the weekly Chinese-language ‘Economic Observer’ the fund, whose actual title is ‘State Assets Management Company’, had been delayed because of negotiations with potential senior management, including a chief executive.

The fund will start with about 10 state-owned companies, which will be added to over time, with a view to better oversee and administer the combined resources between them.

The CIC (China Investment Corporation) was established with $200 billion, a little over half of which is available for investment in financial assets and direct investments. The rest of the funding is made up of the Government’s stakes in large Chinese banks, including the recently floated Agricultural Bank of China and the ICBC. These stakes are held through a CIC subsidiary, Central Huijin.

The newspaper report says: “After the new asset management firm is set up, the biggest change will be that the SASAC will alter its method of supervision of some small centrally-owned enterprises – gradually converting its capital usage to pursue investment returns rather than administrative work.”

The fund is expected to be initially capitalized at 20 billion RMB ($2.95 billion).

Sponsored Content

Leave a Comment

Sort content by

Pension funds to talk climate change with the Prince

The P8, a group of 12 of the world’s largest pension funds tasked with influencing policy makers on climate change, will meet in London next week for a two-day conference convened by its patron, Prince Charles, in the last meeting of the group before the Copenhagen conference of political leaders. mrec4inarticleinline Sponsored Content scnative1 scnative2

Investors need to factor in inflation – Wurts

It may still be the right time to allocate to distressed real estate and debt-related strategies as deleveraging continues around the world and capital remains in short supply. But a significant factor likely to impact on portfolios in the medium term, according to US asset consultancy Wurts & Associates, is inflation. mrec4inarticleinline Sponsored Content scnative1

AustralianSuper rethinks hedge funds

The A$28 billion ($25.5 billion) AustralianSuper, has reduced its allocation to hedge funds from 3.5 per cent to 1.5 per cent, as part of a process of analysing the sources of beta within the overall investment portfolio. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Hedge fund responds to crisis with backdoor listing

Hedge fund managers are moving to improve their capital base in the wake of the financial crisis, as well as their risk processes and asset/liability alignment for liquidity purposes. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Constitutionality of Cuomo’s Common Fund reforms challenged

New York’s State Comptroller, Thomas DiNapoli, has hinted the constitutionality of legislation to create a board of trustees for the State’s Common Retirement Fund may be challenged. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Correlations and the lesson, finally, learned

US-based quant shop AQR Capital has pioneered the notion of hedge fund beta as an investable product. With first-year performance numbers now in, Greg Bright spoke with the firm’s managing and founding principal, Cliff Asness. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous