China Reluctant to Invest in Foreign Banks
Forex June 16th, 2010
HONG KONG – State-owned investment company China reluctant to flow of funds to foreign financial institutions, to ensure that government policies relating to the global economy and overcome the economic turmoil.
Chairman of China Investment Corp. (CIC) Lou Jiwei said today it has approximately USD200 billion fund that will help China’s government investment to increase cash. Later on this cash can be used as a bailout.
Loe said it did not have the desire to invest in foreign banks amid turmoil and uncertainty of economic conditions. We have confidence in financial institutions declined because foreign governments often look to change their policies every week.
“We currently do not have the courage to invest in financial institutions,” he sat talking in a panel discussion that diselenggaran former U.S. President Bill Clinton in Hong Kong, was quoted by AFP on Wednesday (3/12/2008).
It will wait until there is not a massive bankruptcies of financial institutions. Then decided to finance investment.
Government of China has set up investment to increase profits for the foreign currency reserves of Beijing, which is about USD1, until September 9 trillion.
Most of these funds are kept in U.S. Treasury Department and others in the form of securities with low yield levels. But many are complaining about the organization’s largest fund investing in the middle of economic turmoil.
As China’s largest investment companies of the CIC which has provided funds of $ 5 billion in December 2007 to Morgan Stanley. This investment provides the CIC shares up 9.9%
