China buys stake in UK gas company
2 August 2007
People's Bank of China (PBOC), China's central bank, has purchased a .046% interest in UK gas giant BG Group, Reuters reported. According to exchange records, PBOC bought the stake, worth an estimated US$254 million at the current share price, between June 13 and July 15. PBOC representatives declined to comment on the purchase, saying only that the bank did not engage in investment activities. Wall Street analysts speculate that PBOC purchased the stake on behalf of China's new sovereign investment fund, China Investment Corp (CIC). CIC manages US$200 billion of the PBOC's US dollar reserves. Its investments are intended to further Beijing's goals of technological development and resource security.