China Investment Corp, China's sovereign wealth fund, will receive $100bln to $200bln in new funds from the government, according to fund insiders, the Financial Times reports.

CIC, which has fully allocated the $110bln it had available for offshore investments, is to get the new money as Beijing seeks to reduce its exposure to US government debt. A number of senior officials, including the China's central bank governor, have said China's foreign exchange reserves are beyond "reasonable requirements".

CIC was established in 2007 with the mandate to invest foreign reserves in riskier offshore assets. The fund suffered early missteps, investing in US private equity firm Blackstone and Morgan Stanley before their shares plummeted in the financial crisis. After initial investments in western financial institutions, CIC has focused on offshore investments that take advantage of China's economic boom.