China's CIC Sets Up Department For Big Opportunistic Invests
April 29 2009 - 10:47AM
Dow Jones News
China's US$200 billion sovereign wealth fund, China Investment
Corp., said late Wednesday it has set up a specific department
dealing with big opportunistic investments aimed at long-term
returns.
The move is part of the drive by CIC to restructure its
investment departments to maximize interest for its shareholders,
the sovereign fund said in a statement posted on its Web site.
As part of the overhaul, the CIC also set up a private equity
fund investment department to deal with investments in various
areas including the real estate market.
It also set up a department to handle traditional investments in
stocks and fixed-income products. The fourth department will be
dealing with asset management operations on open markets, the CIC
said.
Previously, CIC had altogether three investment departments for
investing in equities, fixed-income products and alternate
assets.
The CIC didn't elaborate on the reasons for the overhaul, which
came after the fund's Chairman Lou Jiwei said earlier this month
that CIC plans to expand its global investments this year,
including in Europe.
CIC has suffered large paper losses on stakes it bought in 2007
in Morgan Stanley (MS) and Blackstone Group LP. Officials at CIC
have said they were reluctant to invest last year in Western
financial firms even as prices plunged.
But Lou said earlier this month at the Boao Forum that the
environment for overseas investment has changed and some
opportunities have been discovered.
CIC has also expressed interest in investing in Australia, a
country with rich resources and active trade contact with
China.
-Victoria Ruan contributed to this story, Dow Jones Newswires;
8610 6588-5848; victoria.ruan@dowjones.com
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