CIC affiliate may have $5.4bn frozen in US fund
14 October 2008
An affiliate of China Investment Corp (CIC), China's largest sovereign wealth fund, may have up to US$5.4 billion locked up in a US money-market account, Bloomberg reported. In early September, Stable Investment Corp, which has links to CIC, was the largest shareholder in US-based Reserve Primary Fund, which suspended withdrawals last month as it became the first US money-market fund to leave investors with losses in 14 years. Regulatory filings as of September 1 show Stable Investment's holdings in Reserve Primary at US$5.4 billion, though its current holdings are unclear. Stable Investment had another US$6 billion invested in other money-market funds in the US this year.