November 06, 2009
China SWF to Invest over $1.5 Billion in US Power Company
The AES Corporation (NYSE:AES), a global power generation and distribution conglomerate based in metro Washington, DC (Arlington, VA), announced today that China Investment Corp. - Beijing's soverign wealth fund - will invest $1.58 billion (US dollars) for a 15% stake in the corporation. CIC will spend an additional $571 million to own 35% of AES's wind power business. AES operates 8 generation plants in China currently with nearly 3 MW combined capacity and has up to 49% stake in a Chinese wind farm. CIC's move could be viewed as a way to bring back to China greater control over AES assets in the country....
Labels: alternative energy, foreign investment, swf
September 24, 2009
China SWF Continues Commodity Focus
The China Investment Corp. (CIC), Beijing's Sovereign Wealth Fund now valued near $300 billion (US dollars), surprised commodity markets with a $2.75 billion investment in two commodities firms - PT Bumi Resources, an Indonesian coal miner and Noble Group a commodities conglomerate based in the autonomous Chinese alpha city Hong Kong. This past summer CIC investested $1.5 billion in Canada's largest diversified mining conglomerate Teck Mining. The investment in Bumi is further evidence that China will continue to power its grids with coal burning for the foreseeable future....
Labels: foreign investment, foreign relations, swf
August 17, 2009
China SWF to Invest Billion$ in USA Mortgages
Beijing's sovereign wealth fund, the China Investment Corporation, plans to invest around $2 billion (US dollars) cash in FDIC insured mortgages (no information whether residential or commercial) via Washington's PPIP (Public-Private Investment Plan) initiative.....
Labels: foreign investment, swf
April 23, 2009
China SWF Refines Its Mission, Looks to Europe
Recent reports that German auto conglomerate Daimler offered to sell a significant stake to China's Sovereign Wealth Fund - the China Investment Corp (CIC) - follow the comments of CIC chairman Lou Jiwei at this year's Bo'ao Forum that the SWF is getting encouraging words from Euro area companies desperate for cash. After being burned by hefty investments in the USA financial sector (Blackstone, Morgan Stanley), CIC is looking elsewhere for investments. Australian mining giant Fortescue has also sought out CIC.
And the announcement that Beijing's State-owned Assets Supervision and Administration Commission will soon form a "CIC 2.0" to invest solely in domestic companies as part of China's central government drive to restructure Chinese business means the CIC may focus entirely on foreign investments...
Labels: financial news, global economy, swf
February 04, 2009
Air Tanzania Gets Chinese Cash to Buy Planes
The announcement today that Air Tanzania would sell a 49 percent stake to a private Chinese investor - China Sonangol International - was in the works since last August. The company plans to use the cash to buy 9 planes, renovate its airport terminal, and fund operations (the airline was grounded recently). The interesting speculation to me is what planes will it buy - Airbus A320 assembled in Tianjin? The smaller domestic Chinese jet the ARJ21 (first deliveries are expected this year) or made in Europe or USA Airbus or Boeing? The financing is by the China Development Bank which was shored up not to long ago by China's Soverign Wealth Fund the China Investment Corp. Could this be one way of funding your own nation's production and export?
Labels: foreign investment, jet planes, swf
September 18, 2008
Will China Rescue Morgan Stanley?
Already the China Investment Corp., China's sovereign wealth fund, owns close to 10% of Morgan Stanley. The latest speculation is a bigger investment maybe even a partial take over is in the works.
Labels: china, money, morgan stanley, sovereign wealth fund, swf
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