CIC and Caisse des Dépôts to launch joint fund

China’s sovereign wealth fund is partnering the direct investment arm of France’s state-controlled financial group to target overseas investments in real estate and infrastructure.

The sovereign wealth fund of China has partnered France’s Caisse des Dépôts Group, a state-controlled financial institution, to launch a fund targeting overseas investments, the South China Morning Post reported yesterday.

CIC Capital, China Investment Corporation (CIC)’s direct investment arm, inked a deal with Caisse des Dépôts International Capital, a unit of Caisse des Dépôts Group, following the fourth annual China-France High Level Economic and Financial Dialogue, which was held in Paris this year.

Chinese vice premier Ma Kai and French finance minister Michel Sapin co-chaired the talks, which are intended to promote bilateral communication and policy coordination in economics and finance.

The new fund, the size of which was not disclosed, will particularly seek out real estate and infrastructure assets, investing overseas as well as in the greater-Paris region.

Qi Bin, deputy general manager of CIC, said this week that CIC plans to boost its overseas investment efforts and beef up its direct investment capabilities. At present CIC’s investments in France total about $8.3bn, or 4.1% of CIC’s portfolio.

In its 2015 annual report CIC said it has been ramping up investments in sectors such as real estate and infrastructure to earn stable returns at a time when the global economy has been slowing down.

CIC is part of an investor group eyeing Singapore-based industrial property developer Global Logistic Properties, Bloomberg reported on November 2.

See more from this Government Report: France, People's Republic of China


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