HONG KONG – China's sovereign-wealth fund, China Investment Corp. (CIC), has received an additional $50 billion in funding from the central government, according to a report Tuesday in the Financial Times.
The increase was disclosed in Beijing by CIC officials attending a forum, according to the report.
The funding is a portion of the $100 billion-$200 billion sought by the CIC and likely represents an effort by the central government to release new funds slowly over time to better gauge the fund's performance.
CIC was founded in 2007 with $200 billion proceeds from a government bond issued by the Ministry of Finance that was then used to purchase foreign-exchange reserves from the People's Bank of China.
The fund carries a dual mandate to diversify China's forex reserves and achieve higher returns than investments in U.S. Treasurys.
According to the fund's 2010 annual report, the most recent available, CIC had owner's equity of $374.3 billion as of Dec. 31, 2010.
foxbusiness.com
The increase was disclosed in Beijing by CIC officials attending a forum, according to the report.
The funding is a portion of the $100 billion-$200 billion sought by the CIC and likely represents an effort by the central government to release new funds slowly over time to better gauge the fund's performance.
CIC was founded in 2007 with $200 billion proceeds from a government bond issued by the Ministry of Finance that was then used to purchase foreign-exchange reserves from the People's Bank of China.
The fund carries a dual mandate to diversify China's forex reserves and achieve higher returns than investments in U.S. Treasurys.
According to the fund's 2010 annual report, the most recent available, CIC had owner's equity of $374.3 billion as of Dec. 31, 2010.
foxbusiness.com
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