The CIC publicly denied reports that the investment was frozen as Reserve Primary had suspended withdrawals, after it became the first domestic money market fund in 14 years to leave investors with a loss.

On its website, the CIC claims to be a creditor and not a shareholder of the U.S. fund, and adds that it filed a redemption order for the USD5.4 bn before the fund announced the suspension. "CIC is confident of its position with regard to the full recovery of its money," the statement says.

China Investment Corp has previously invested USD5bn in Morgan Stanley, and USD3 bn in buyout firm Blackstone. Both investments have incurred a loss of around 70 per cent, as stock prices of the two U.S. companies collapsed.

Related stories:

CIC Goes Japan
http://www.bizchina-update.com/content/view/1283/2/

China to Invest Currency Reserves in Japan
http://www.bizchina-update.com/content/view/683/2/

China Buys Into Morgan Stanley, Who’s Next?
http://www.bizchina-update.com/content/view/428/2/

China Investment Company to Buy Blue Chip Shares
http://www.bizchina-update.com/content/view/227/2/

Keywords : CIC, Investment, Finance, Fund

Average user rating