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

A Simple Theory of the Financial Crisis; or, Why Fischer Black Still Matters

In this month’s Financial Analysts Journal, Tyler Cowen professor of economics at George Mason University, Virginia makes sense of the current financial crisis by drawing on some of Fischer Black’s ideas. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Arizona expands allocation ranges, freezes private investments

The $27 billion Arizona State Retirement System has extended its asset allocation ranges and postponed the approval of new commitments to private market investments until the end of June, unless an overriding investment opportunity exception exists. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Bps speak: the real value in internal management

A 10 per cent increase in internal investment management results in a 4.2 basis points increase in net value added to a pension fund’s bottom line, according to analysis of the CEM Benchmarking database, which has data on more than 380 global pension funds from 1991 to 2007. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Where the growth is: mandate trends in 2009

As a recent survey by US management consultant Casey Quirk showed, for investment management, 2009 is all about beta. Director of research, Ben Phillips, spoke to Kristen Paech about mandates that pension funds are investigating, and the role alpha may play. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

That market’s got style: investing through cycles

Style investing remains a powerful tool in periods of market volatility and, in particular, style analysis reminds investors to be aware of the distinction between overall market risk and stock specific risk. Amanda White spoke with director of Style Research, Robert Schwob. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Risk reduction pays off for ABP

The giant Dutch pension fund ABP’s plan to reduce investment risk as a means of recovery from an underfunded position is paying dividends, with the coverage ratio increasing from 86 to 91 per cent from March to April. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous