CIC buys US$9.6b stakes in major firms

0 CommentsPrint E-mail Shanghai Daily, February 10, 2010
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China Investment Corp, the country's sovereign wealth fund, bought US$9.6 billion worth of shares in 84 companies listed in the United States, including Morgan Stanley, Apple Inc and Coca-Cola, by the end of last year.

The biggest investment of US$3.54 billion was in Teck Resources Ltd, a Canadian resources and mining company listed in the US, followed by US$1.77 billion in Morgan Stanley and US$714 million in Blackrock Inc, according to a filing to the US Securities and Exchange Commission.

The US$300 billion investment fund also held small stakes in other American brands, including Apple Inc, Citigroup, Coca Cola, Johnson & Johnson, Motorola and Visa.

"Resources and financial companies are its main focuses as they are big components in a nation's economy," said Du Zhengzheng, an analyst at Hongyuan Securities Co.

CIC, formed in 2007, has shown interest in overseas investments after the global economy showed signs of recovery following pro-growth fiscal and monetary policies.

"China Investment Corp has intensively invested in resources and commodities sectors since the second half of 2009 in anticipation of price gains in these sectors bolstered by strong demand amid an economic recovery, especially from emerging markets," its Chairman Lou Jiwei said in an article published in Century Weekly magazine on Monday.

He said CIC would speed up its overseas investments steadily this year.

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