Subscribe free to our newsletters via your
  China News  

Subscribe free to our newsletters via your

China's vast sovereign wealth fund to be 'stabilising force': report

Packed to the rafters with cash.
by Staff Writers
Beijing (AFP) Nov 30, 2007
China Investment Corp., a company established recently to handle 200 billion dollars of forex reserves, has vowed to play a "stabilising role" in global financial markets, state media said Friday.

Lou Jiwei, the former vice finance minister in charge of the company, said no similar sovereign wealth fund had ever been a destabilising factor abroad, the China Daily reported.

"They are stabilising the market. The CIC will also do the same thing," he was quoted as telling a conference in Beijing.

Lou said it would be a few more months before the company would make any major investments, and once it did, it would go for "reasonable long-term returns with acceptable risks".

The CIC was formally established in late September, but created waves across the world long before that because of the vast size of the funds under its management.

It is in charge of 200 billion dollars -- roughly one seventh of China's forex reserves -- and could potentially see even more funds from the forex reserve put under its management in future.

The CIC itself gave rise to speculation it would follow an aggressive investment strategy by investing three billion dollars in US private equity company Blackstone in May, even before it had been formally set up.

Since then, however, it has kept a low profile and apparently made no major acquisitions.

China's forex reserves, which stood at 1.455 trillion dollars at the end of October, are mostly placed in US-dollar assets, especially low-yield Treasury bonds.

Email This Article
Comment On This Article

Related Links
China News from

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Dalai Lama rankles China with succession warning
Amritsar, India (AFP) Nov 27, 2007
The Dalai Lama stepped up a war of succession with China on Tuesday, warning that Tibet's next Buddhist spiritual leader will be chosen abroad if he dies in exile.

  • US, China, feud over Taiwan, Tibet, port dispute
  • China says ties with US damaged, amid naval row
  • Keating Aims To Improve Communication With China After Port Call Rejections
  • Russia studying US missile defence proposals: agencies

  • EU leaders: China must handle trade surplus, open markets
  • Taiwan lifts objections to Chinese judge at WTO
  • BHP-Rio merger could create monopoly: Chinese body
  • China trade surplus hits record as foreign patience wears thin

  • Massive landslide threatening homes in central Austria: authorities
  • More deaths as storms exit the Philippines
  • NORTHCOM Experience Lends Lessons To Bangladesh Relief
  • US marines assist stepped up relief effort in Bangladesh

  • China Completes Enclosure Of Land For Fourth Satellite Launch Center
  • China Has No Timetable For Manned Moon Landing
  • Chinese plan manned space launch
  • New Rocket Set To Blast Off By 2013

  • Moscow Finds Relief As Gas Prices Rise Only 30 Percent
  • Africa urged to avoid morning-after oil hangover
  • Tokyo wants gas exploration deal with China: official
  • Iraq Looks Inward To Rebuild Oil Industry

  • China says estimated HIV/AIDS cases rise to 700,000
  • UN cuts AIDS infection estimate: report
  • Repellents Between Dusk And Bedtime Make Insecticide-Treated Bednets More Effective
  • Global Fund approves over 1 bln dlrs in new grants to fight disease

  • IAEA inspects Russian fuel for Iran: factory
  • French, Italian energy groups reach deal on nuclear cooperation
  • Seoul offers to use North Korean nuclear fuel rods: report
  • Two years to start Japan's giant nuke plant: expert

  • Nine killed in China mine blast: report
  • Despite efforts, China still unable to wean off coal
  • Environmental concern grows in China over mining: report
  • Cleaner coal key part of energy supply: environmentalists

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement