Wednesday, March 4, 2009

CIC to invest in commodities

China Investment Corp is looking for investment opportunities in commodities, according to Jesse Wang, a senior official with China's $200 billion plus sovereign wealth fund.

Officials have said that CIC wants to diversify its portfolio in the natural resources sector after booking heavy losses on high-profile financial investments in private equity fund Blackstone and U.S. bank Morgan Stanley.

Wang, CIC chief risk officer, said the global recession had just begun, and as a result, bigger price declines in commodities and energy were possible.

"No matter where the company invests, it is always possible there will be book losses in a particular period," he told reporters on the sidelines of a meeting of a parliamentary advisory body.

The wealth fund will diversify its investments in the financial and energy sectors, Wang added.

A move into commodities and energy by CIC would add to a wave of investments backed by Chinese state funds in those sectors that topped $50 billion in February alone, including Russian and Brazilian oil deals and investments in Australian mining firms Rio Tinto and OZ Minerals.

For more articles on this topic click the links below

Foreign interest is all win for Australia
-- The Australian
China's CIC Sees Opportunities in Natural Resources -- CNBC
China Investment Corp may diversify portfolio into commodities, energy -- Reuters via Mineweb
China to invest in undervalues commodity markets -- zionistgoldreport