Minister: CIC to make prudent investment
Updated: 2007-12-13 08:43
China's sovereignty wealth fund will maintain prudent investment and respect the laws in recipient countries, Finance Minister Xie Xuren said in Beijing Wednesday.
Speaking during a break in the two-day China-US Strategic Economic Dialogue, Xie said that the fund would pursue long-term investment instead of short-term speculation, and would achieve a balance between security and profitability.
"So, the sovereignty wealth fund is an important force in helping stabilize global growth and address global economic imbalance," he said.
The fund, or China Investment Corp (CIC), was set up in September this year, with an initial capital of $200 billion from the country's massive foreign exchange reserves.
One-third of the capital would be used to purchase Huijin Investment Co that now controls major state-owned commercial banks. Another third would be injected into state-owned banks for shareholding reforms, CIC chairman Lou Jiwei said earlier this week.
The remaining $70 billion was earmarked for overseas investment in a wide range of portfolios but would not seek control, said Lou.
"CIC attaches great importance to dialogue and cooperation with international organizations, foreign regulatory bodies and counterparts," said Xie.
It would be effectively supervised and operate in accordance with international rules and local laws in recipient countries.