China Investment Corp will open on Saturday, the Beijing-based
China Securities Journal said today.
The reserves agency of China will have an 11-member board of
directors, said the report.
Lou Jiwei, deputy secretary-general with the State Council, will
be chairman of the agency with a registered capital of US$200
billion, while Gao Xiqing, deputy chairman of the National Social
Security Fund, will be general manager.
Zhang Hongli, a vice minister at China's finance ministry, is
one of the three executive directors of the agency together with
Lou and Gao.
The agency will also have five non-executive directors,
including Hu Xiaolian, director of the State Administration of
Foreign Exchange, and Liu Shiyu, vice governor of People's Bank of
China, the report said.
Liu Zhongli, former finance minister, and Wang Chunzheng, vice
director with the National Development and Reform Commission, will
be independent directors of the agency.
China is setting up the company to help increase the returns on
the country's foreign-exchange investments, currently mostly parked
in US-dollar assets.
Meanwhile, China Central Huijin Investment Co will be merged
into the agency to better manage mounting foreign reserves.
Central Huijin has been injecting huge amounts of foreign
currency into China's three big state-owned banks to help clean
their bad-debt and take stakes of these banks as return.
After the merger, Central Huijin will continue its key role in
the restructuring of state-owned banks.
Its parent company will focus on overseas investment.
The agency is collecting money by selling special bonds worth of
US$200 billion.
(Shanghai Daily September 27, 2007)
