A government fund that is to invest part of China's US$1.3 trillion in foreign currency reserves is due to be officially launched tomorrow, according to news reports.
Financial analysts are watching the agency closely to see where it invests and its possible impact on financial markets. It is expected to be entrusted with US$200 billion, which would make it one of the world's richest investment funds.
The agency is likely to be called the China Investment Corp (中國國家投資公司), Dow Jones Newswires and the Chinese newspaper Securities Journal reported yesterday. Both cited unidentified sources.
An Chinese official who was involved in setting up the fund said he could not confirm the reports. Foreign reporters will be barred from the official opening ceremony, said Jesse Wang (
higher returns
Beijing created the fund in an effort to earn higher returns on its currency reserves, which have soared amid a boom in export revenues.
A large portion of the reserves have been invested in safe but low-yielding US Treasuries.
Its creation comes at a time of tensions with Washington over China's swelling trade surplus and unease in the US and elsewhere over Beijing's growing economic and military might.
Authorities say the agency will be modeled in part on Singapore's government-owned Temasek Holdings, which invests in banks, real estate and other industries in China, India and elsewhere.
A key question has been the possible impact of the new strategy on the market for US Treasury securities.
budget deficit
Beijing is a big buyer of Treasuries, helping to finance the US government budget deficit. Chinese officials have given no details of how much money might be diverted to other assets.
The Chinese agency agreed in May to pay US$3 billion for just under 10 percent of US investment firm Blackstone Group LP.
Wang, who was involved in negotiating the Blackstone purchase, said in May that the Chinese agency was expected to attempt to avoid political strains abroad by purchasing minority stakes in companies rather than pursuing corporate takeovers.
Chinese companies have been uneasy about foreign acquisitions since the uproar in 2005 over state-owned oil company CNOOC Ltd's (
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source