Tags: China | foreign exchange | reserves | China Investment

China to Pump $200 Billion Into Fund

Wednesday, 23 Dec 2009 08:20 AM

China is planning to inject $200 billion from its foreign exchange reserves into the country's China Investment Corp. over the coming months, government officials there say.

Fresh allocations into the investment fund would indicate that Beijing is pleased with its performance, the Financial Times reported.

The fund took a hit a year ago when it lost money investing in Morgan Stanley and U.S. private equity firm Blackstone.

Since then, China Investment Corp. has channeled money into commodities-related assets that performed well amid the country's recovery.

“Their performance has been very good by most measures, and they have gotten through the Blackstone-Morgan Stanley debacle, which really hurt and constrained them in 2008,” according to one person who works with the fund.

A final decision is still pending, says the Financial Times.

China has set an 8 percent growth target for 2010 based on global economic recovery, says the country's Industry Minister Li Yizhong.

The economy expanded 7.7 percent during the first nine months of 2009.

“Based on the economic growth target of about 8 percent, set by the central government, we aim for industrial output growth at about 11 percent,” says Li, according to the Associated Press.

Private-sector economists are predicting more robust growth for the Chinese economy next year, ranging from 9 percent to 11.9 percent.

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China is planning to inject $200 billion from its foreign exchange reserves into the country's China Investment Corp. over the coming months, government officials there say. Fresh allocations into the investment fund would indicate that Beijing is pleased with its...
China,foreign exchange,reserves,China Investment
216
2009-20-23
Wednesday, 23 Dec 2009 08:20 AM
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