On September 28, China will launch a state investment company to manage
part of the nation’s enormous foreign exchange reserves, China Business
News reports.
China's foreign currency reserves, which are the world’s largest,
exceed USD1.33 trillion. It is estimated that about 70 percent are
held in US dollar denominated papers, such as US government bonds.
The goal of the new agency is to maximize returns on the reserves. The
first steps towards this end were taken earlier this year, when China
invested USD3 billion of foreign exchange reserves in US private equity
group Blackstone.
Former vice finance minister Lou Jiwei will be chairman of the new
company and Gao Xiqing, vice chairman of the social security fund, will
become the general manager.
By: Wm Patrick Cranley (Guest IP 58.37.103.28) on 24-09-2007 12:35
Note the similarity of the new Chinese investment company to Temasek Holdings, the Singapore government's investment arm. Seems that all those meetings with Lee Kuanyew were not just idle talk.
(0 vote)
Managing Director
By: Wm Patrick Cranley (Guest) on 24-09-2007 12:35