World biggest fund announces strategic plans
The government has announced the first strategic plans for the country’s new 200 billion U.S. dollars investment fund, saying two-thirds of the funds will be invested in domestic State banks and it will avoid buying into foreign oil, airline or telephone companies.
The comments by a Finance Ministry official, reported Thursday by domestic media, appeared to be aimed at easing potential foreign opposition to the fund. Critics have questioned whether such state-run funds will be used to promote government policy and whether they should be barred from investing in sensitive industries.
China created the company, which overnight became one of the world’s biggest investment funds, to pursue better returns on China’s US$1.3 trillion in reserves. Most are now held in U.S. Treasury securities and other safe but low-return instruments.
Source:China Finance Net
Copyright Fund China 2009.
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