China Investment Corp (CIC), the country's US$200 billion sovereign wealth fund, has reportedly agreed to buy a 40% stake in CITIC Capital Holdings Limited (CITIC Capital), the China Securities Journal reported Monday.
CIC will buy new shares issued by CITIC Capital, which will give CIC a 40% stake in CITIC Capital after the new share issue, CITIC Capital said in a letter sent to its Limited Partners (LP) on July 17.
Wang Jianxi, Deputy General Manager and Chief Risk Officer of CIC, said during the Global Think Tank Summit in early July that the wealth fund majors in financial investment. Any assets, industries or sectors with underestimated prices will have investment potentials, said Wang.
Before CIC's investment, CITIC Pacific (0267.HK) and CITIC International Financial Holdings Ltd each hold 50 percent in CITIC Capital, which had 3 billion HK dollars in equity capital by the end of 2008.
Founded in 2002, CITIC Capital's core business includes private equity, real estate funds, structured finance, public market investments, and special investments among others. The company has over 150 employees based in offices in Hong Kong, Shanghai, Beijing, Tokyo and New York.
For more information, please consult the original coverage in Chinese at: http://www.cs.com.cn/xwzx/03/200907/t20090719_2155381.htm
(China.org.cn by Wu Nanlan July 20, 2009)