China's sovereign wealth fund to increase direct investments in U.S.

Updated 2017-05-20 08:01:17 Xinhua

China Investment Corporation (CIC), the sovereign wealth fund, plans to make more direct investments in the United States, as it sees greater trade and investment potential in the world's largest economy, CIC said on Friday.

Tu Guangshao, vice chairman and president of CIC, said setting up overseas branches is a strategic move for the fund to expand global outreach, deepen partnership, and improve investment capabilities.

China's sovereign wealth fund held an opening ceremony of its New York representative office and an investment seminar on Friday.

The New York representative office's main function, Tu explained, includes conducting research on North American economy, financial market and regulation policies, strengthening cooperation with business partners, collecting project information and providing support for the headquarters.

"It will also stay well-connected with local government agencies and regulatory bodies to enhance CIC's reputation and image as a responsible institutional investor," he said.

Tu is optimistic that China and the United States will expand cooperation on investment as the two countries are in mutual need of closer bilateral ties.

For China, outbound investment has become a key component in the sustainable development of its economy, as Tu observed.

He said that for the United States, President Donald Trump's pro-business policies including tax reform, deregulation and infrastructure plan, if effectively implemented, will further boost corporate spending, capacity utilization, and labor productivity.

"As an effective source of funding for these policies, foreign investment will serve as an important driver for the U.S. economy," Tu said in a keynote speech.

According to Tu, U.S. holdings currently accounts for approximately 40 percent of the fund's overseas portfolio, but mostly in open market.

He added that the fund is looking to change its investment strategy but the process will be a gradual one.

Headquartered in Beijing, CIC started with an initial funding of 200 billion U.S. dollars. By the end of 2015, its total assets had surpassed 810 billion dollars.

As China's sovereign wealth fund, CIC serves as a vehicle to diversify China's foreign exchange holdings and seek maximum returns for its shareholder within acceptable risk tolerance.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58November 19 2018 15:28:11

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16November 19 2018 15:28:11

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18November 19 2018 15:28:11

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords