CIC: Cash in China

Ashby Monk

The China Investment Corporation has $90 billion in cash ready to invest in a wide range of asset classes, according to CIC Vice President Wang Jianxi at the 11th Chinese People’s Political Consultative Conference. Including cash equivalents, up to 90% of the CIC’s asset base of (what once was) $200 billion is in highly liquid assets. With asset prices so low, the CIC is in an enviably position.

Granted, some of the CIC’s assets will be used to recapitalize struggling Chinese banks. Nevertheless, the CIC can really pick and choose among a myriad of assets globally. The only constraint appears to be lingering political concerns over SWF motivations (despite a desperate need for cash the world over). Indeed, the CIC is reported to be increasing its investments in developing economies (specifically Africa) in order to avoid the high levels of scrutiny in the West.

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This website is a project of Professor Gordon L. Clark and Dr. Ashby Monk of the School of Geography and the Environment at the University of Oxford. Their research on sovereign wealth funds is funded by the Leverhulme Trust and The Rotman International Centre for Pension Management.

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