China SWF signs European deal to boost corporate links
Under joint deal with Belgian government and a private equity firm, China's CIC plans to buy into lowly valued names and increase western firms' access to Far East.
Markets
by Chris Sloley on May 03, 2012 at 14:44
The China Investment Corporation (CIC), the country's sovereign wealth fund, has teamed up with the Belgian government and private equity firm A Capital Asia to launch a cross-border fund to boost European business in China.
The launch of the A Capital China Outbound fund was announced on Thursday at a ceremony in Brussels attended by China’s Vice Premier Li Keqiang and Belgian Prime Minister Elio di Rupo.
The fund will invest in leading European companies which have a market cap of over €100 million and are well-suited to growth in the Chinese market. It is set to focus on established European companies with technological and distribution potential.
Private and state-owned co-investors from the Chinese market will be invited to aid the fund in enabling the European names to flourish in the Far East.
The announcement comes shortly after it emerged the CIC is set to work with US asset management giant BlackRock to create a fund to aid investment in China.
The Chinese sovereign wealth fund currently has $409.5 billion in total assets according to the latest available figures, which are for the year ending December 2010.
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