China - CIC, SAFE, NSSF, Central Huijin etc.

China - CIC, SAFE, NSSF, Central Huijin etc.

Postby LenaHuat » Mon Sep 08, 2008 3:59 pm

Since we have a thread on GIC and Temasek, I tot it will be good for us to track the world's largest reserve of USD1.7 trillion (China's) : (From The Telegraph and reprod by Today)
China builds up £9bn stake in top British companies
By Ben Harrington
Last Updated: 11:08pm BST 07/09/2008

China's central bank has built stakes worth up to an estimated £9bn in Britain's index of leading blue-chip companies, including Tesco and Unilever.

A Sunday Telegraph investigation revealed yesterday that the People's Bank of China, and its investment arm - the State Administration of Foreign Exchange (SAFE) - has bought stakes in at least half the FTSE 100, and probably considerably more.

An investigation carried out by the newspaper showed that the People's Bank of China owns shares in many of Britain's household corporate names, such as Aviva, Cadbury, HSBC, the London Stock Exchange, Marks & Spencer and British Energy.

People's Bank of China stakes that have previously been revealed include BG Group, Drax Group and Prudential.

The figures on SAFE's investments have been compiled from an analysis of the shareholder registers of about half of the companies in the FTSE 100. They reveal that almost all of them include the Chinese central bank as a shareholder.

Based on figures obtained from registers where the People's Bank of China could be identified, SAFE has spent more than £3.5bn on shares in British companies.

The total, though, is likely to be substantially higher because the Chinese central bank is an investor in some companies that have not discovered that SAFE is a shareholder.


SAFE has 4 international offices : London, HK, NY and Singapore :)
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Re: CIC and SAFE

Postby winston » Sat Sep 13, 2008 11:29 am

China CIC Executive: Unaware Of Stake Buy Talks With Lehman
September 12, 2008: 10:13 PM EST


SINGAPORE -(Dow Jones)- A senior executive at China Investment Corp. said Saturday he's unaware of any talks about CIC buying a stake in Lehman Brothers Holdings Inc. (LEH).

"Sorry, I haven't heard this," Jesse Wang, CIC Executive Vice President and Chief Risk Officer, told Dow Jones Newswires when asked whether the CIC was looking into buying a stake into Lehman.

The Financial Times reported Friday on its Web site that Bank of America Corp. (BAC), private-equity firm J.C. Flowers & Co. and CIC, China's US$200 billion sovereign wealth fund were considering a joint bid for Lehman.

"The only question now is what price," the newspaper quoted a person who had been in discussions with the New York-based brokerage over asset sales and with regulators.
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Re: CIC and SAFE

Postby sidney » Thu Oct 09, 2008 1:03 am

From Social capitalism to global nationalism.
Tempered.
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Re: CIC and SAFE

Postby kennynah » Thu Oct 09, 2008 12:58 pm

winston wrote:
"The only question now is what price," the newspaper quoted a person who had been in discussions with the New York-based brokerage over asset sales and with regulators.


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Re: CIC and SAFE

Postby winston » Mon Oct 13, 2008 10:59 am

China's CIC May Have $5.4 Billion Frozen in Money-Market Fund By Miles Weiss and Belinda Cao

Oct. 13 (Bloomberg) -- China Investment Corp., the sovereign wealth fund that bought stakes in Morgan Stanley and Blackstone Group LP before their stocks plunged, may have as much as $5.4 billion frozen in a U.S. money-market account.

Stable Investment Corp., an affiliate of Beijing-based CIC, was the largest shareholder in Reserve Primary Fund on Sept. 1, according to regulatory filings. Reserve Primary suspended withdrawals last month after becoming the first U.S. money- market fund in 14 years to leave investors with losses. Stable Investment had about $6 billion in additional U.S. money-market funds earlier this year.

``I don't think anyone in China can claim a lack of experience in what can go wrong with a money-market fund,'' said Michael McCormack, executive director of Shanghai-based Z-Ben Advisors Ltd., adding that several domestic funds needed cash injections in 2006 to offset losses. ``I'm a little surprised that CIC would be invested in any money-market fund that carried a hint of risk.''

China, which has primarily held its $1.8 trillion in currency reserves in low-yielding U.S. government debt, set up CIC last year to put about $200 billion into assets with higher rates of return, such as stocks and corporate bonds. It invested $5 billion in Morgan Stanley, the second-biggest U.S. investment bank, and $3 billion in buyout firm Blackstone, manager of the largest leveraged buyout fund. Both New York-based companies have lost more than 70 percent of their market value since the purchases.

Parking Cash

CIC devoted most of its money to domestic banks, and has about $35 billion remaining for global investments, according to McCormack at Z-Ben, which consults on the China's money- management industry. The fund had placed $11 billion in U.S. money-market funds, according to filings with the U.S. Securities and Exchange Commission. It may be using the money funds to park cash until selecting outside money managers to help it invest, said Brad Setser, a fellow for geoeconomics at the Council on Foreign Relations, a New York-based think tank.

``It has taken them awhile to figure out what they want to invest in,'' Setser said. ``In a context where the global market has slid, there hasn't been a lot of pressure to invest quickly.''

Depending on its performance, CIC may be allocated as much as $1 trillion of China's foreign exchange reserves, according to Michael Martin, an Asian trade and finance analyst at the U.S. Congressional Research Service in Washington.

Stable Investment is an affiliate of CIC, said two people with knowledge of CIC. Both companies occupy the same floor of the New Poly Plaza in Beijing. The Stable Investment contacts listed in SEC filings -- Jiang Xiaoyun and Wang Rong -- work in CIC's finance department, these people said.

Wang, reached by telephone at her office, declined to comment.

Invesco, JPMorgan Funds

A Sept. 29 SEC filing shows that Stable Investment held 11.1 percent of Reserve Primary's institutional shares at the beginning of the month. Based on the 48.9 billion institutional shares outstanding as of May 31, the most recent information available, Stable Investment's stake would have totaled about $5.4 billion.

Stable Investment has also invested roughly $5.9 billion in three other U.S. money market funds, according to documents filed earlier this year with the SEC. That includes $2.1 billion in the Invesco Aim Liquid Assets Portfolio; $2.3 billion in the JPMorgan Prime Money Market Fund; and $1.5 billion in Deutsche Asset Management's DWS Money Market Trust.

Officials for the four U.S. money-market funds that reported Stable Investment as a shareholder declined to comment. When reached at his home with a question on the identity of Stable Investment, Reserve Management Corp. founder and Chairman Bruce Bent said, ``I have no idea whatsoever.''

Reserve Primary Liquidation

By Sept. 16, the day after Lehman had filed for bankruptcy protection, investors had sought to withdraw $40 billion from the $62.5 billion Reserve Primary fund. Reserve Primary ended up releasing $10 billion at a rate of $1 a share. The last value published for the fund was 97 cents a share.

Reserve Primary's loss triggered a widespread run in which investors withdrew $133 billion from U.S. money-market funds the following two days.

Ming Lee Hatch, a Reserve Management spokeswoman, declined to comment on whether Stable Investment withdrew its cash before Sept. 16. Reserve Primary is liquidating its assets and expects to make an initial distribution of $20 billion to remaining investors on Oct. 13.
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Re: CIC and SAFE

Postby winston » Mon Nov 17, 2008 10:20 am

China Investment Corp eyes stake in Fortescue-paper

HONG KONG, Nov 17 (Reuters) - Sovereign wealth fund China Investment Corp (CIC) is again in talks to buy a minority stake in Australia's third-largest iron ore producer, Fortescue Metals Group, a Hong Kong newspaper reported on Monday.

CIC may bring in strategic investors such as China's largest iron and steel maker, Baosteel Group, and the country's biggest coal miner, China Shenhua Steel, if the talks progess with Fortescue founder Andrew Forrest, the South China Morning Post reported, citing sources.

"They've looked at this before, and now the price is in a zone that suits them," the newspaper quoted a source as saying.

Shares of Fortescue Metals have fallen 74.7 percent so far this year, compared with about a 41 percent drop in the benchmark ASX 200 Index. The shares hit a 52-week low at A$1.825 last Thursday, the paper said, and shares had returned to that level on Monday.

Forrest owns 35.82 percent of Fortescue Metals, the paper added. It gave no further details.

Last week, Fortescue Metals said demand for its products remain strong and its customer relationships are robust amid a downturn in China. Forrest said the group was in a strong financial position.
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Re: CIC and SAFE

Postby winston » Wed Dec 03, 2008 11:07 am

China wealth fund lacks stomach for financial buys

HONG KONG, Dec 3 (Reuters) - China Investment Corp, the sovereign wealth fund that has incurred steep paper losses on its stakes in U.S. financial firms, said on Wednesday that it is "not brave enough" to invest in foreign financial firms and lacks confidence in the shifting U.S. financial regulatory situation.

"It's changing every week. How can I be confident?," Lou Jiwei, head of CIC, said during the Clinton Global Initiative event in Hong Kong, referring to U.S. government efforts to rescue the devastated financial services sector.

He said the fund has grown shy when it comes to investing in overseas financial companies.

"We don't have the courage to invest in financial institutions any more, because we don't know what problems we will put ourselves into," Lou said.

CIC has incurred substantial unrealised losses on its stakes in U.S. private equity firm Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz) and Wall Street bank Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz).
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Re: CIC and SAFE

Postby winston » Thu Dec 04, 2008 9:33 am

INTELLIGENCE: (INT} Chinese SWF arm buys shares of top 3 banks

(INT)Central Huijin, an arm of China's SWF, spent USD 177mn buying local currency shares in three top banks to support the stock market according to alocal newspaper.

The three banks include ICBC, Bank of China and CCB and were part of govt efforts to rescue the ailing stock market. Latest numbers show that CNY 763mn were spent on UCBC shares; CNY 177mn on BoC and CNY 277mn on CCB.-SSN
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Re: CIC and SAFE

Postby winston » Thu Dec 18, 2008 7:15 am

Beijing boosts holdings in financial stocks KatherineNg

Beijing is boosting its shareholdings in financial firms through its sovereign fund, even though the national pension fund has been selling off equities in recent months to take profit.

Since September, Central Huijin, the investment arm of China Investment Corporation, has bought stakes totaling 1.3 billion yuan (HK$1.47 billion) in the top three mainland commercial banks, the National Business Daily reported.

Last Friday, when the Shanghai Composite Index fell more than 77 points, or nearly 4 percent, the investment unit bought 500.7 million yuan worth of A shares in Industrial and Commercial Bank of China. With that move, Huijin now holds a total 860 million yuan worth of ICBC shares, 277 million yuan worth of China Construction Bank (0939) and 185 million yuan worth of Bank of China (3988) assets, as of last Friday's Shanghai close, the newspaper said.

Huijin has already become the major shareholder of these three Hong Kong-listed banks, as well as major mainland banks including China Development Bank, China Everbright Bank and other city lenders. However, market watchers said the moves could be viewed as indirect action by the central government, aimed at shoring up investor confidence. "It's not likely Beijing would step up to support the stock market directly, either with a stabilization fund or new measures," said Dwyfor Evans at State Street Global Markets.

State media first reported on September 18 that cash-rich Central Huijin would buy shares in the three lenders to shore up their share prices.
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Re: CIC and SAFE

Postby millionairemind » Tue Jan 06, 2009 5:44 pm

China SWF to slow investment

SHANGHAI - CHINA'S US$200 billion (S$294.5 billion) sovereign wealth fund will slow down its investing pace after being stung by major investments that turned sour in the world financial crisis, a report said on Tuesday.

China Investment Corp (CIC) has been adjusting its investment plans since September, said Mr Zhang Hongli, the company's vice-executive president, according to the official Shanghai Securities News.

The moves came amid turbulence on global financial markets as the world faces recession.

'Now, cash is king and as far as possible we will refrain from making investments,' Mr Zhang was quoted as saying by the newspaper.

CIC suffered nearly US$4 billion in unrealised losses from its US$5 billion investment in the bank Morgan Stanley made in December 2007, the report said.

It also owns more than 10 per cent of private-equity firm Blackstone, after increasing its original stake in October.

CIC bought its original stake in Blackstone just before the company's 31-dollar-per-share initial public offering in June 2007. Blackstone's shares are currently trading at less than a quarter of its IPO prices.

The fund has faced severe criticism at home for its investment choices after the collapse of global markets led to heavy paper losses - also known as unrealised losses, on investments that have yet to be cashed in.

CIC chief executive Lou Jiwei said he had lost confidence in western financial institutions during the global economic crisis and would not be investing in them, the Wall Street Journal reported in December. -- AFP
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