China Investment Corporation May Set Up New Overseas Investment Company

As reported by Bloomberg News, China Investment Corp., the nation’s sovereign wealth fund, may set up a new company focused on overseas investment, China Business News reported today. How American companies can catch the wave of Chinese overseas investing will be discussed  at Golden Networking‘s China Leaders Forum 2011, http://www.ChinaLeadersForum.com, October 7, New York City, forum that will examine the challenges facing American companies that want to grow and expand their business in China, the opportunities to find Chinese investment partners that can provide a much-needed capital injection while opening the Chinese market, as well as important considerations to look at so that the high-powered Chinese rocket doesn’t crash anytime soon.

China should expand the scale of its sovereign wealth funds to maintain the value of the country’s foreign exchange reserves and improve returns, Zhang Monan, an economics researcher at the State Information Center, wrote in a commentary in the China Daily last month. Fund investment should be shifted to “industrial investment” and away from financial holdings in a bid to acquire more overseas resources, Zhang wrote. CIC will fund a bid by JC Flowers & Co. for Northern Rock Plc, the Sunday Times reported on Aug. 14. CIC set up a $4 billion fund with Flowers to buy distressed U.S. financial companies after the credit crisis, the newspaper said. The fund said Aug.10 it plans to buy a 30 percent stake in GDF Suez SA’s oil gas production and exploration subsidiary for $3.2 billion, and it may also purchase a stake in GDF’s liquefied natural gas dock in Trinidad and Tobago for $850 million.

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