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13 April 2024

China sovereign wealth fund to target range of assets: report

By Agencies


China's vast sovereign wealth fund said it would target a broad array of assets as it dismissed concerns it was a threat to other nations, state media reported Monday.

The $200 billion China Investment Corp. (CIC) has decided on seven categories and sixteen sub-classes of assets it plans to invest in, the China Securities Journal reported, citing Jesse Wang, the fund's vice president.

"Highly diversified assets allocation ... will help spread risk as much as possible and increase returns," Wang was quoted as saying.

He was not quoted as giving details about the different categories of assets to be targeted by the fund.

Wang dismissed foreign concerns about sovereign wealth funds' alleged lack of transparency and suspicions about their objectives.

"We have noticed some countries, including the United States, have set up impediments to sovereign wealth funds' investments in domestic companies and turned this into a political issue, which I think is unnecessary".

"It's inappropriate to politicise investments by sovereign wealth funds or link them to nationalism," he said in the China Securities Journal.

Wang said the CIC, with one-third of its money slated for overseas investment, had no problems with transparency as long as it did not hurt the fund's commercial interests, he said.

The Shanghai Securities News, another official newspaper, quoted Wang as saying that the CIC has interviewed about 100 international asset managers in search of investment expertise.

The fund will seek a highly-diversified portfolio, including investments in stocks, fixed-income assets, private equity as well as hedge funds, Wang told the newspaper.

The fund has announced plans to invest $five billion in Morgan Stanley for no more than 9.9 per cent of the US bank's shares. It has also bought a $3 billion stake in US private equity firm Blackstone Group. (AFP)