RSSNewsletterSiteMapFeedback

Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
China Investment Co. to invest US$5b in Morgan Stanley
Adjust font size:

China Investment Corp. (CIC), the nation's state-owned forex investment firm, said late Wednesday that it has agreed to invest 5 billion U.S. dollars in the No. 2 U.S. investment bank Morgan Stanley.

 

The Chinese firm, which invested 3 billion U.S. dollars earlier this year in the U.S. private equity firm Blackstone Group, will purchase equity units that are mandatorily convertible into 9.9 percent of Morgan Stanley common shares.

 

The equity units carry a fixed annual interest rate of nine percent before conversion on Aug. 17, 2010.

 

The purchase is "a long term, passive financial investment" and does not lead to a role in management of Morgan Stanley, said a statement from CIC.

 

"It is a good opportunity to invest in U.S.-based financial institutions, many of which are being undervalued when the subprime mortgage crisis has had an impact on them," Li Yang, director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, told Xinhua.

 

Also on Wednesday, Morgan Stanley reported a larger-than-expected loss in the fourth fiscal quarter due to a 9.4-billion-U.S. dollar writedown from its exposure to subprime and other mortgage-related investments.

 

It lost 3.61 billion U.S. dollars in the fourth quarter, compared to a profit of 2.27 billion U.S. dollars in the same period a year earlier.

 

"CIC believes that Morgan Stanley has potential for long-term growth, particularly in its investment banking, asset management and wealth management businesses, as well as new business development opportunities in emerging markets," said the statement.

 

The purchase is made in accordance with CIC's global investment strategy, which is to seek attractive long-term returns with acceptable risks, it said.

 

CIC will maintain a cautious investment strategy, Finance Minister Xie Xuren said last week at the China-U.S. high-level economic talks. "It will pursue long-term investment instead of short-term speculation, and will achieve a balance between security and profitability."

 

China Investment Corp. 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. an investment arm of the Chinese government, and another third would be injected into state-owned banks for shareholding reforms, CIC chairman Lou Jiwei said.

 

The remaining 70 billion U.S. dollars was earmarked for overseas investment in a wide range of portfolios but would not seek control, he said.

 

Earlier this month, CIC made its second investment this year of about 100 million U.S. dollars in the initial public offering of the China Railway Group in Hong Kong.

 

(Xinhua News Agency December 20, 2007)

Tools: Save | Print | E-mail | Most Read

Comment
Username   Password   Anonymous
 
China Archives
Related >>
- Market, experts hail Morgan Stanley deal
- Hard task ahead for CIC fund
- CIC to be stable force in global financial market
- China's Forex to Invest in Blackstone
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Online operators are on top of the game
-Macao's gaming market expands further
-Insurance firms set to stump up billions

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright ? China.org.cn. All Rights Reserved E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP證 040089號

主站蜘蛛池模板: 福利视频第一区| 黑人巨鞭大战欧美肥妇| 日本人强jizzjizz老| 抽搐一进一出gif免费视频| 又大又硬一进一出做视频| 4ayy私人影院| 天堂а√8在线最新版在线| 久久婷婷人人澡人人喊人人爽 | 免费看美女脱衣服| 色国产精品一区在线观看| 国产精品成人第一区| 一级特色大黄美女播放网站| 最近手机中文字幕1页| 免费一区区三区四区| 青青在线国产视频| 国产欧美日韩另类一区乌克兰| jyzzjyzz国产免费观看| 日本视频一区在线观看免费| 亚洲综合色网站| 秋霞午夜在线观看| 加勒比黑人在线| 精品无码久久久久久国产| 国产大片b站免费观看推荐| 91麻豆精品在线观看| 性色爽爱性色爽爱网站| 久久精品国产亚洲精品| 欧美视频免费一区二区三区| 哦哦哦用力视频在线观看| 成人免费观看一区二区| 国内精品久久久久伊人av| 五月婷婷一区二区| 丰满的己婚女人| 91视频一区二区三区| 97碰视频人人做人人爱欧美| 91华人在线视频| 韩国久播影院理论片不卡影院| 黄色a三级免费看| 精品国产乱码久久久久软件| 骚视频在线观看| caoporn成人| 试看60边摸边吃奶边做|