China Investment Corporation, the state-run investment fund, will invest heavily in Japan's financial markets, media report.
China's assets shrink on a daily basis as the Dollar is losing worth
against all major currencies. As stock markets across the globe head
south, the government has now decided to use its investment fund, China
Investment Corporation (CIC), to invest a large but undisclosed amount
in foreign stocks. As we reported earlier, the fund announced
plans to target the Japanese market.
The CIC was entrusted USD200 bn last year for strategic investments and
used USD3 bn to acquire nine per cent in the world's biggest buyout
fund Blackstone Group LP.
The recent financial turbulences have now apparently convinced the
Chinese that it may be a good time to further invest billions of US
dollars. A CIC official said that the fund will "soon start investing
in Japanese shares", Nikkei business newspaper reports. No timeline was
given. Experts believe that the Chinese may already have bought stakes
in some of Japan's most well known companies, including Toyota and Sony.
The investments in Japan may be only the beginning. On its website, the
CIC starts recruiting foreign financial specialists for its expansion
in North America and Europe. "The asset classes we are hiring managers
for include the cash market, fixed income, equity and hedge funds,"
Reuters quoted Gao Xiqing, CIC's general manager. We will also be
hiring managers for private equity."
The CIC's international investment department will be located in Beijing.
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