State-owned investor eyes overseas market

Updated: 2008-03-05 19:25

BEIJING -- China's state-owned investment holding giant said on Tuesday it is poised to focus on overseas investment and the financial sector in the next five years to reap greater benefits.

The State Development and Investment Corp (SDIC) unveiled its strategy despite the losses the country's sovereign wealth fund suffered in its overseas deals in the wake of US subprime mortgage crisis.

SDIC plans to shift part of its investment, which previously went solely to the domestic market to overseas infrastructure construction and resources-fueled industries.

Its investment share in the financial sector will be raised from 10 to 20 percent, according to General Manager Wang Huisheng. He said the company was eyeing stakes in all kinds of financial institutions, including commercial banks and trust funds.

The evaluation of a successful investment holding company was largely decided by its performance in the overseas and financial markets, Wang said.

He said the SDIC would like to test its fortune while being exposed to both high risks and handsome return.

The company's entire 150 billion yuan (21.13 billion US dollars) investment since 1995 has all been poured into the domestic market, of which 90 percent went to low-risk infrastructure construction and resources-fueled industries.

Wang told the Beijing Times that limiting risk would be a priority for the company.

The company was expected to invest seven billion yuan this year. A listing plan was also considered by the company in the long-range.

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