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News Daily：
State media says China's vast sovereign wealth fund 'stabilising force'
China Investment Corp., a company established recently to handle 200 billion dollars of forex reserves, has vowed to play a "stabilising role" in global financial markets, state media said Friday.
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Lou Jiwei, the former vice finance minister in charge of the company, said no similar sovereign wealth fund had ever been a destabilising factor abroad, the China Daily reported.
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"They are stabilising the market. The CIC will also do the same thing," he was quoted as telling a conference in Beijing.
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Lou said it would be a few more months before the company would make any major investments, and once it did, it would go for "reasonable long-term returns with acceptable risks".
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The CIC was formally established in late September, but created waves across the world long before that because of the vast size of the funds under its management.
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It is in charge of 200 billion dollars -- roughly one seventh of China's forex reserves -- and could potentially see even more funds from the forex reserve put under its management in future.
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The CIC itself gave rise to speculation it would follow an aggressive investment strategy by investing three billion dollars in US private equity company Blackstone in May, even before it had been formally set up.
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Since then, however, it has kept a low profile and apparently made no major acquisitions.
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China's forex reserves, which stood at 1.455 trillion dollars at the end of October, are mostly placed in US-dollar assets, especially low-yield Treasury bonds. — AFP
