China's sovereignty wealth fund will maintain prudent investment
and respect the laws in recipient countries, Finance Minister Xie Xuren said on Wednesday.
Speaking during a break in the two-day China-U.S. Strategic
Economic Dialogue, Xie said that the fund would pursue long-term
investment instead of short-term speculation, and would achieve a
balance between security and profitability.
"So, the sovereignty wealth fund is an important force in
helping stabilize global growth and address global economic
imbalance," he said.
The fund, or China Investment Corp. (CIC), was set up in
September this year, with an initial capital of 200 billion U.S.
dollars from the country's massive foreign exchange reserves.
One-third of the capital would be used to purchase Huijin
Investment Co. that now controls major state-owned commercial
banks. Another third would be injected into state-owned banks for
shareholding reforms, CIC Chairman Lou Jiwei said earlier this
week.
The remaining 70 billion U.S. dollars was earmarked for overseas
investment in a wide range of portfolios but would not seek
control, said Lou.
"CIC attaches great importance to dialogue and cooperation with
international organizations, foreign regulatory bodies and
counterparts," said Xie.
It would be effectively supervised and operate in accordance
with international rules and local laws in recipient countries.
(Xinhua News Agency December 12, 2007)
