Fri, September 10, 2010
Business > Industries

China may restructure its sovereign wealth fund

2010-09-10 15:46:08 GMT2010-09-10 23:46:08 (Beijing Time)  Business China

September 10, China is considering restructuring its $3,000 billion sovereign wealth fund China Investment Corporation (CIC), in a bid to boost accountability, two sources with knowledge of the plan said.

The proposed restricting will focus by CIC on its overseas portfolio.CIC has been aggressively investing across the globe since it was established in September 2007, but like other Asian sovereign funds it suffered huge loss from its investment in the U.S. financial industry.

One proposal suggested breaking the CIC into three parts, two of which would focus on stocks and strategic resource investments, according to one unnamed source. Another calls for the CIC and Central Huijin Investment Ltd, its wholly owned subsidiary, to spilt.

China's sovereign wealth fund is accountable to the State Council, China's cabinet, which has the final say on the planned restructuring.

CIC and the Finance Ministry had no immediate comment.

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