Credit Suisse Group, an international investment bank, predicts in its latest research report the prospective investment strategies that the newly established China Investment Corp Ltd. (CIC) is likely to follow. The report points out that CIC, managing 1/6 of China's foreign reserves, that is, US$200 billion, is China's new investment carrier. CIC is likely to buy into the world's 50 largest corporations in the future and so it deserves close attention.
The report says that the CIC will probably spend some of its US$200 billion on various kinds of investment funds. It will play the role of financial investor to support the overseas acquisitions made by Chinese companies and will continue investing in large global companies to create long-term investment portfolios.
In addition the report predicts that companies that can attract the CIC's investment must meet three criteria: be large-sized; have good long-term prospects and possess a market value of no less than US$10 billion. Political factors and financial risks are likely to cause the CIC to avoid investing in most state-own enterprises, the report added.
For more details, please read the full story in Chinese. (http://paper.people.com.cn/gjjrb/html/2007-10/09/content_23651298.htm)
(China.org.cn October 9, 2007)