China forex fund finds safety in secrecy

[FT News]

Beijing faces rising criticism of its use of the nation's foreign exchange wealth by bodies such as CIC and Safe, with the exact composition of their holdings not clear.

China Investment Corporation, the fledgling $200bn sovereign wealth fund, has been savaged domestically for losing more than $4bn with misjudged investments in Blackstone and Morgan Stanley.

Meanwhile, China’s secretive State Administration of Foreign Exchange is estimated to have lost 20 times more than CIC through a poorly timed diversification into global equities but has not faced any criticism.

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[Elie]

Thank you for sharing useful information.Once they direct their economic resources more to acquisition and growth outside China, there will be a huge bidding war for assets around the world. Their movement of hundreds of billions of dollars from cash reserves into the global equity will probably fund a nice stock market run, sometime after 2010.Check out: IS Markets - Institutional Forex Prices for Retail Clients for further details.