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

Australian contributions increase shifts retirement burden

The increase in the Australian superannuation guarantee (SG) from 9 to 12 per cent of salary is an example of how the retirement savings burden, a global phenomenon, can be shifted from the public to private sectors, according to senior partner at Mercer, David Knox. The increase in the SG, which has been approved in

Why you should take notice of what we write

New research released this month gives impetus to the evidence that newspaper articles can predict aggregate future stock returns. Conducted by Professor of Finance at the University of St Gallen in Switzerland, Manuel Ammann, it examines articles in the German finance paper, Handeslblatt, from July 1989 until March 2011, and overall found that “newspaper content

CalPERS to move $1bn fixed income in-house

CalPERS plans to move $1 billion of its externally-managed international fixed income portfolio in-house in the next 12 months, but it will require board approval to do so.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Texas Teachers extends manager partnerships

Texas Teachers Retirement System has extended a unique public markets strategic partnership structure to two of its private market managers in a move it claims will give the fund a long-term strategic advantage over other investors.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Keynes and the character required for a long-term view

In the interests of educating myself I recently read Chapter 12 “The State of Long-Term Expectations” in John Maynard Keynes’ seminal economics tome General Theory. I particularly like his statement: “it needs more intelligence to defeat the forces of time and our ignorance of the future than to beat the gun”, but then I’ve always

Recipe for avoiding half-baked dynamic asset allocation

In what is lauded as somewhat of a Laurel and Hardy performance, APG’s Stefan Lundbergh and academic provocateur Jack Gray, demonstrate the disparity between ideology and action in a hypothetical dynamic asset allocation case study. But jokes aside, it highlights the misnomer in the words “best practice”, and the lack of courage in this industry.

Previous