Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
CIC: US Primary Fund to return all its investment
Adjust font size:

China Investment Corp. (CIC), which operates the country's sovereign wealth fund, on Wednesday said it had given notice to the Reserve Primary Fund, a U.S. money market fund, to withdraw all its investment before the latter's suspension announcement.

The CIC had received a written verification from the U.S. fund to return the investment and the relevant interest, the Chinese firm said in a statement to clarify the status of its investment in the Reserve Primary Fund via CIC affiliate the Stable Investment Corp.

Bloomberg reported on Monday CIC may have as much as US$5.4 billion frozen as the Reserve Primary Fund suspended withdrawals last month.

The Reserve Primary Fund suspended redemption last month because of losses on debt issued by bankrupted Lehman Brothers.

A U.S. regulatory filing showed Stable Investment Corp. was the biggest institutional shareholder in the U.S. monetary market fund with a stake of potentially more than US$5 billion.

CIC confirmed its investment in the Primary Fund, but said it would not be subject to the possible 3 percent losses incurred by the Reserve Primary Fund.

The fund announced investors who hadn't made a withdrawal before the redemption suspension may be subject to the 3 percent principal losses.

The CIC made an order to claim all its money back before the withdrawals were suspended, and received a written confirmation from the Primary Fund to return all the principal and interest, said CIC in a statement published on its website.

Currently, CIC is not a shareholder of the Primary Fund, but a creditor, according to the statement.

The Sovereign wealth fund, with capital of US$200 billion from the country's huge foreign exchange reserve, has attracted great attention at home as its two major investments in Blackstone and Morgan Stanley suffered losses during the ongoing financial crisis.

The Primary Fund has announced it would return about 35 percent of the money of its investors soon. The plan to return the remainder was under draft and under supervision of the U.S. Securities and Exchange Commission.

The CIC said it had been in contact with the U.S. securities regulators to ensure its investment was fully refunded and its legal rights were protected.

Established a year ago, the CIC has invested US$3 billion in U.S. private equity firm Blackstone and US$5 billion in investment bank Morgan Stanley.

Also on Wednesday, the CIC said it had opened its official website (www.china-inv.cn) in both Chinese and English in effort to increase transparency.

(Xinhua News Agency October 16, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- CIC opens official website to improve visibility
- CIC: One acquisition no solution to US credit crisis
- Expanding CIC looks for global expertise
- China's CIC to invest in global equity market soon
- Fierce competition in bidding to manage CIC assets
Most Viewed >>
- The 9th Hangzhou International Auto Industry Exhibition
- Toy firm lays off 6500 amid crisis
- Microsoft launches pirate crackdown
- No more Windows XP from Tomato Garden
- Santa Claus isn't coming to town
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?