Sunday 25 December 2011

China's CIC to get $50 billion




China's $410 billion sovereign wealth fund China Investment Corp. is set to receive additional funding of up to $50 billion, two sources said, a step that could help it move quickly to buy overseas assets, especially in Europe.
The new funding comes along with an agreement between relevant Chinese government agencies to give CIC CIC.UL new money to manage every year, the sources who had knowledge of the matter told Reuters on Friday.
The sources asked not to be identified due to the sensitivity surrounding China's management of its foreign reserves.
The agreement would lay out a long-term framework under which CIC would be allocated money to manage from China's foreign exchange reserves and would also chart the future of its domestic investment arm, Central Huijin Investment, the sources said.
"The final plan for capital injection will be unveiled shortly and it could be $50 billion," a source close to the matter said.
CIC officials declined to comment.
source routers

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