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

Re: CIC and SAFE

Postby winston » Fri Jan 16, 2009 3:20 pm

UPDATE: China Sovereign Fund Raising Stakes In 3 State Bks

BEIJING -(Dow Jones)- China Investment Corp., the country's sovereign wealth fund, has been increasing its stakes in state-owned Bank of China Ltd. (3988.HK) , China Construction Bank Corp. (0939.HK), and Industrial & Commercial Bank of China Ltd. (1398.HK), CIC Chief Executive Lou Jiwei said Friday.

Lou's statement comes after foreign strategic investors in China's largest banks unloaded their holdings. Royal Bank of Scotland Group PLC (RBS) and UBS AG (UBS) both recently sold their stakes in Bank of China, and Bank of America Corp. (BAC) trimmed its stake in China Construction Bank.

Lou, speaking on the sidelines of a news briefing, said foreign financial institutions sold the stakes "due to their own financial difficulties," and not because of the financial state of Chinese banks.

The sale of foreign institutions' stakes to other investors is proceeding smoothly, he added.

Central Huijin Investment Ltd., the domestic investment arm of China's sovereign wealth fund, "has been constantly increasing its stake" in the three state-owned banks, Lou said.

CIC and the banks will make an announcement on the stakes at an appropriate time, he said.

Lou said the fund also hasn't stopped its investment abroad and hasn't reduced the proportion of its funds earmarked for overseas investment.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC and SAFE

Postby winston » Tue Feb 24, 2009 10:49 am

DJ China Natl Pension Fund '08 Equity Invest Loss CNY39B-Report

BEIJING (Dow Jones)--China's national pension fund had an equity investment loss of CNY39 billion last year because of a slump in the domestic stock market, the China Business News reported Monday, without citing sources.

The Social Security Fund's income from fixed-asset and industrial investments totaled around CNY20 billion in 2008, the report said, without giving comparative figures.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & CNPF

Postby blid2def » Wed Mar 04, 2009 2:21 pm

China built enormous stake in US equities just before crash

Full article:
http://www.telegraph.co.uk/finance/fina ... crash.html

Excerpt:

China built enormous stake in US equities just before crash
The Chinese government more than tripled its investments in the US stock market to $99.5bn (£70 bn) just months before the financial crisis, it has emerged.

By Malcolm Moore in Shanghai
Last Updated: 3:06PM GMT 02 Mar 2009

Provisional figures from the US Treasury department showed that Beijing was holding $99.5bn of shares in June 2008, up from $29bn in 2007. Two years ago, China only held $4bn in US equities, preferring to concentrate on Treasury bills.

However, economists said the latest figures suggested that China may have bought as much as $150bn of equities worldwide, or 7pc of its vast foreign exchange reserves.

Brad Setser, an economist with the Council on Foreign Relations, a US think tank, said the State Administration of Foreign Exchange (SAFE), a branch of the Chinese central bank charged with looking after the foreign reserves, was responsible for the buying spree.

Last year, a Sunday Telegraph investigation revealed that SAFE had built holdings of £9bn in companies listed in London. The new figures suggest that SAFE has now become one of the largest sovereign wealth funds in the world, although it is likely to have been badly burned by falling markets during the financial crisis.

The shift into riskier investments was the result of a power-struggle between China’s central bank and the Ministry of Finance, both of which wanted to show they were capable of managing China’s huge wealth.
blid2def
Permanent Loafer
 
Posts: 2344
Joined: Tue May 06, 2008 7:03 pm

Re: CIC, SAFE & CNPF

Postby winston » Wed Mar 04, 2009 5:21 pm

China Investment May Buy Undervalued Commodity Assets (Update3) By Luo Jun and Zhang Dingmin

March 4 (Bloomberg) -- China Investment Corp., the $200 billion sovereign wealth fund, may invest in “undervalued” commodity assets, joining other Chinese companies in taking advantage of a seven-year low in prices.

“Many commodities are undervalued and are among our considerations for potential investments,” Executive Vice President Jesse Wang told reporters today on the sidelines of the country’s legislative advisory body in Beijing.

CIC, as the sovereign fund is known, is turning to commodity assets after losing money on financial firms including Blackstone Group LP and Morgan Stanley. Chinese state-owned companies last month announced plans to invest $22 billion in mining producers, securing iron ore, copper and zinc assets from debt-laden companies unable to secure funding in a global recession.

“As commodities are linked with the real economy, you may incur book losses should the real economy worsens,” Wang said. “If you hold the assets for a long term, you may still make a profit.”

The Reuters/Jefferies CRB Index of 19 commodities this year fell to the lowest level since June 2002, as the global recession crimped demand from carmakers and builders. The price and demand collapse has forced Rio Tinto Group, OZ Minerals Ltd. and Fortescue Metals Group Ltd. to seek Chinese funding.

Currency Reserves

China, whose $1.95 trillion in currency reserves are the world’s largest, should use its reserves to buy overseas resources, Zheng Xinli, a deputy director at the policy research office of the ruling Communist Party, said today in Beijing.

The country should buy more assets that produce oil, natural gas, metals and grain, Liu Kegu, a consultant at state-owned China Development Bank told reporters outside the Chinese People’s Political Consultative Conference.

CIC is in talks to invest about $3 billion in Fortescue Metals, Australia’s third-biggest iron ore exporter, three people familiar with the transaction said last month. The proposed deal may be in preferred shares paying a dividend, one person said.

The sovereign fund will continue to increase its stakes in the Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. “at the appropriate time,” Wang also said today.

Central Huijin Investment Co., a unit of CIC, is the largest shareholder in the three Chinese banks. It said in September it would buy shares in the lenders to bolster confidence in the nation’s stock market.

Asset Allocation

The company spent 1.2 billion yuan ($175 million) to raise its holdings in the three companies between Sept. 23 and Nov. 28, the Shanghai Securities News reported in December.

CIC slowed its asset allocation overseas last year from its original plan as markets became more volatile and held “a lot of cash” at the end of the year, Wang said.

The fund holds “quite a lot of” non-financial assets including manufacturing, resources and basic necessities, he said.

China may tap the country’s foreign reserves to help companies buy oil fields abroad, China National Petroleum Corp., the country’s biggest oil producer, said in a statement last month, citing the state’s three-year energy plan. The nation may set up an oil fund to boost exploration, it said then.

The Chinese government should increase taxes on the consumption of natural resources to improve efficiency and protect the environment, China Development Bank’s Liu said.

The Ministry of Finance is studying a plan to raise export tax rebates of other products, Liu also said without elaborating.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & CNPF

Postby winston » Sun Apr 19, 2009 7:29 pm

China's huge state pension fund eyes private equity

BOAO, China, April 19 (Reuters) - China's national pension fund, the National Social Security Fund (NSSF), said on Sunday it is looking for at least 3-5 private equity funds to help it manage part of its 563 billion yuan ($82 billion) portfolio.

The fund, which has a goal of amassing 1 trillion yuan in assets by the end of 2010, intends to reduce its bond exposure and buy more direct equity stakes in state firms this year, state media reported earlier this year. [ID:nPEK62111]

"We will pick at least 3-5 private equity firms this year, focusing on investing in small and medium businesses and the service industry," Chairman Dai Xianglong said at the Boao Forum for Asia held in Hainan.

Dai did not say how much money was involved or whether the investment would be in foreign or domestic markets.

"Last year nearly 100 foreign and domestic firms contacted us about private equity, and another 20 wanted to raise funds," Dai told a panel discussion.

After investing in China Development Bank, Agricultural Bank of China and the Beijing-Shanghai express railway project, the fund said it would increase direct investment in state-owned companies and firms with local government backing.

The NSSF is allowed by law to invest up to 20 percent of its assets in foreign markets but had only invested $1.66 billion outside of China as of the end of 2007.

The NSSF is also looking at ways to use the Chinese currency, the yuan, to invest directly overseas, but Dai did not elaborate.

"This is a work in progress," he said.

The Chinese yuan is not fully convertible, making direct investment impossible, but some financial regulators around the world support a larger role in international finance for the yuan, to help offset reliance on the U.S. dollar.

Chinese central bank governor Zhou Xiaochuan advocated last month that the U.S. dollar eventually should be replaced as the world's main reserve currency by the International Monetary Fund's Special Drawing Rights
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & NSSF

Postby winston » Wed May 06, 2009 10:28 am

DJ China Pension Fund Posts 1st Net Loss Since Establishment

SHANGHAI (Dow Jones)--China's national pension fund posted a net loss of CNY39.37 billion ($5.8 billion) last year due to a sharp slump in the local stock market, the first time it ended a year in the red since the fund was established in 2000. The National Council for Social Security Fund reported a net profit of CNY135.49 billion in 2007, it said in a statement posted in the China Securities Journal. Its total assets dropped to CNY562.37 billion at the end of last year from CNY569.24 billion at the end of 2007, the fund said.

The national pension fund posted a fair value loss of CNY62.73 billion on its securities trading positions, as China's stock market lost two-thirds in value last year. The fund posted a fair value gain of CNY22.57 billion a year earlier. Its investment return ratio dropped to -6.79% in 2008 from 38.93% in 2007, the fund said, adding its accumulated investment return since its establishment totaled CNY160 billion, representing an annualized return ratio of 8.98%.

The national pension fund, which is headed by former central bank Gov. Dai Xianglong, said earlier this year it will adjust its investment strategy this year to cope with the global financial crisis and a domestic economic downturn. The fund said in February it will buy more equity in unlisted state-owned companies this year, as well as in some major infrastructure projects. It has received approval from the Cabinet to take strategic stakes in China Development Bank Corp. and Agricultural Bank of China Ltd. as part of the two banks' stockholding reforms.

The latest strategy is in line with Beijing's call for the country's investment institutions to channel more funds to support the government's CNY4 trillion economic stimulus plan introduced late last year.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & NSSF

Postby millionairemind » Sat Jul 04, 2009 5:08 pm

Looks like both Temasek and CIC are going after natural resources..

July 4, 2009
CIC buying stake in Teck

VANCOUVER - MINING company Teck Resources Ltd said on Friday it is selling a 17 per cent stake to China Investment Corp. for C$1.74 billion (S$2.2 billion) in a bid to reduce its debt load.

The Vancouver-based company said CIC, the world's largest commodity buyer, will buy 101.3 million class B voting shares for C$17.21 each. CIC will hold onto the stock for at least a year, said the mining company.

The proceeds from the private placement will go toward paying down nearly C$10 billion in bank debt and will also give the company a chance to forge a partnership with a major foreign investor, said Teck's chief executive in a conference call.

'We will have a financial relationship with a very deep-pocketed investor who would potentially participate in future development projects,' said Don Lindsay.

The sale, which is still subject to regulatory approval, is slated to close on July 14.

Teck has been selling assets and cutting costs to pay down the debt acquired after the C$9.8 billion purchase of Fording Canadian Coal Trust last year.

China, on the other hand, has been aggressively pursuing major acquisitions or investments in commodity companies. In the oil industry, the Chinese have become the most aggressive deal makers, taking advantage of low oil prices to help feed the country's energy needs.

Last week, China's Sinopec announced it will acquire oil explorer Addax Petroleum for $7.2 billion, in what would be the largest overseas takeover ever by a Chinese company. Sinopec, a refiner, would gain access to substantial reserves in West Africa and the Middle East if the takeover of Addax is approved. -- AP
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 8183
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: CIC, SAFE & NSSF

Postby winston » Sat Aug 08, 2009 8:59 am

China sovereign fund lost US$6.7b in 2008

BEIJING - China Investment Corp (CIC), the country's US$200 billion sovereign wealth fund, reported Friday that it lost US$6.7 billion in its global investment portfolio last year.

However, CIC said in its first annual report that overall investment returns were US$24 billion due to its wholly-owned unit Central Huijin Investment Co, the controlling shareholder of state-run Chinese banks.

The CIC made US$4.8 billion in new investments last year and was insulated from more severe losses because 87.4 percent of its global portfolio remained in cash, bills and money market funds, the report said.

"With the deteriorating global economy and the outbreak of the international financial crisis, we actively slowed down the pace of investment... to avoid suffering bigger losses," Chairman Lou Jiwei said in the report.

The fund said its position meant it had "ample cash to seize investment opportunities" in 2009.

The fund said its total assets stood at US$297.5 billion at the end of 2008, the report said.

The fund was set up to help China find more lucrative ways to place its massive foreign exchange reserves, which stand at US$2.13 trillion and are parked mainly in low-yield instruments such as US Treasury bonds.

However, the fund has so far not lived up to expectations, partly because of its launch date, shortly before the global financial crisis.

The fund has also raised suspicions abroad about China's intentions, with some critics fearing it would use its financial muscle to buy valuable assets across the globe.

- AFP/ir
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & NSSF

Postby winston » Tue Aug 18, 2009 6:15 am

China to Invest Billions in U.S. Mortgages

HONG KONG -- China's $200 billion sovereign wealth fund, which made big paper losses on stakes in Morgan Stanley and Blackstone, is set to invest up to $2 billion in U.S. mortgages as it eyes a property market recovery, two people with direct knowledge of the matter said on Monday.

China Investment Corp (CIC) plans to invest soon in U.S. taxpayer subsidized investment funds of toxic mortgage-backed securities, which it sees as a safer bet than buying into the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF).

http://moneynews.newsmax.com/financenew ... 48596.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: CIC, SAFE & NSSF

Postby winston » Sat Aug 29, 2009 6:28 pm

China comes to Canary Wharf company's rescue

LONDON : China's state sovereign wealth fund has bailed out the heavily indebted majority owner of London's Canary Wharf, according to the real estate development's owner.

The Financial Times newspaper reported that the move by China Investment Corporation (CIC) was its first big investment in Britain.

The owners of Canary Wharf, Songbird Estates, said in a statement that CIC would form a consortium with Qatar Holding, the Qatari sovereign wealth fund, and a number of existing investors, to provide more than 800 million pounds (900 million euros, 1.3 billion US dollars) in new equity.

The money is needed to pay 880 million pounds that Songbird owes to US bank Citigroup.

David Pritchard, the chairman of Songbird, said the deal had saved Songbird from bankruptcy.

"This deal secures the future of Songbird on the best possible basis for our shareholders," he added.

Qatar will become the largest shareholder in the group with a stake of just below 30 percent with US private investor Simon Glick taking 27 per cent and CIC taking around 19 percent, the Financial Times said.

The Canary Wharf development in east London's Docklands houses the offices of major banks and media and newspaper groups.

- AFP/ir
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to ASIA, OCEANIA & AFRICA: Data, News & Commentaries

Who is online

Users browsing this forum: No registered users and 14 guests