CIC Set for up to $200bn in Fresh Funds

China Investment Corp., the official sovereign wealth fund, is going to receive between $100-200 billion in new funds from the government. From the Financial Times:

, which has already fully allocated the $110bn it had available for offshore investments, is to get the new money as seeks to reduce its exposure to US government debt. “There has been bureaucratic bickering for a year,” said one person familiar with the matter. “It has been difficult to resolve.”

Recently, a number of senior officials, including China’s governor, have said the country’s exchange reserves are excessive and beyond “reasonable requirements”.

The reserves, already the largest in the world, grew by nearly $200bn in the first quarter to top $3,000bn for the first time. In the past week, two senior government economists have publicly said China only needs reserves of around $1,000bn.

CIC was established in 2007 with the mandate to invest some of the country’s in riskier offshore assets. At that time, China had less than $1,500bn in its foreign exchange coffers.

Read more about CIC and China’s overseas investment via .

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