CIC to step up US investments

China Investment Corporation is looking to increase its commitments to US-based companies, as well as private equity and hedge funds to combat low returns in public markets.

China Investment Corporation (CIC), the sovereign wealth fund of China, is set to boost its investments in the US as the organisation faces low returns in public markets, Reuters reported on Monday.

CIC hopes to increase its direct investments in US-based businesses, as well as its commitments to private equity and hedge funds. The fund is also considering investments in the manufacturing industry and in infrastructure projects.

Founded in 2007, CIC has approximately $800bn under management, of which $200bn are overseas assets.

Ding Xuedong, chairman and chief executive of China Investment Corporation, said: "We hope to increase our alternative investments, which is also a common trend among large global institutional investors, to cope with the low or even negative interest rate environment, where the returns in public markets are falling.

"According to our estimate, the United States needs at least $8 trillion in infrastructure investments. There is not sufficient capital from the US government or private sector. It has to rely on foreign investments."

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


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