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

Peter Bernstein: Risk Inverse

Peter Bernstein, an economic consultant and respected investment thinker passed away on Friday June 5 in New York. Widely regarded as an intellectual giant in the investment circles for his ability to translate complex mathematical models into practical applications, he founded the Journal of Portfolio Management in 1974 and wrote a number of respected books

…as consultant assessment initiates changes to internal equity team and technology

CalPERS has reached its capacity to internally manage equities portfolios and would need to make changes to technology and staff resources if the internally-managed equities program is expanded, according to the outcome of the annual consultant review of CalPERS’ internal equity team by Wilshire Associates. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Asset class review inspires opportunistic allocation at CalPERS’

CalPERS is considering adopting an “opportunistic” program seeking to profit from substantially undervalued assets across various asset classes and strategies, and will be limited to 3 per cent of the fund’s total market value. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

The future of risk management: How independent should risk management be?

Barry Schachter, research associate with the EDHEC Risk and Asset Management Research Centre and director, quantitative resources, Moore Capital Management believes the current crisis is a catalyst for change in the conduct of risk management because it has challenged the efficacy of the existing risk management model, but simply imposing regulation is not the change

SWFs struck at financial crisis epicentre: $50b in losses from financials

For their biggest public market investments in the last two years, sovereign wealth funds (SWFs) zeroed-in on the most dogged companies in the worst-performing sector: Western financials. These decisions incurred paper losses of $US56.3 billion, accounting for most of their public market losses for the period. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Working hard for the money

Last year large institutional investors in the US, including the State of Massachusetts Pension Fund and CalPERS, dedicated money to senior bank loans. Amanda White examines the outlook for the sector and talks to group head of ING’s senior loan group, Jeff Bakalar, about whether institutional allocations to the sector have been tactical or strategic.

Previous