According to its chairman, Lou Jiwei, shown here, China Investment Corp. (CIC), China’s sovereignty wealth fund, is looking to be a stabilizing force in the international equity markets.

CIC, which manages 200 billion U.S. dollars of China’s massive foreign exchange reserves, seeks to stabilize global equity markets through investment.

Lou Jiwei told a forum it would boost corporate transparency when it does not affect company interests.
The majority of its investments would be in publicly-traded securities with a smaller part for alternative investments. The company would also seek direct investments.

Lou said the management was under huge pressure as the fund’s capital was raised by the Ministry of Finance through the issuance of a special treasury bond. CIC has to bear the 5% cost of the capital.

He said this means the fund has to make a profit of RMB300 million a day to make ends meet.
Source: China View