From Financial Times:
China Investment Corporation , the Chinese sovereign wealth fund, is close to an agreement with JC Flowers, the US private equity group, to put about $4bn into a new fund to invest in ailing financial institutions.
The move follows blockbuster transactions in which sovereign wealth funds from Asia and the Middle East have invested directly in beleaguered banks such as UBS , Merrill Lynch , Citigroup and Morgan Stanley .
The tie-up under discussion would differ from those deals because CIC would be investing indirectly, reflecting the growing worry among sovereign wealth funds of a political backlash as they put more money into well-known foreign companies.
