Thu, Dec 18, 2014
A A A
Welcome preal121
RSS

Sovereign Wealth Funds Briefing - Categorized | Fund Management/Administration, Reserve Currencies

China needs market discipline to manage its foreign exchange wealth

Posted on 25 July 2013

Hu Shuli says the government must look at restructuring its sovereign investment companies to compete on the global stage for better returns. The inception of the China Investment Corporation six years ago marked the birth of a true sovereign wealth fund for China. Though it is undoubtedly heading in the right direction, the CIC is hobbled by the terms of its inception.
For its funds, it relies on the foreign exchange reserves bought with the special bonds issued by the Ministry of Finance. The cost of this money is high, while it may invest only in low-risk, low-return financial products. This mismatch has limited its operations………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 15416 posts on Opalesque Sovereign Wealth Funds Briefing.


Contact the author

Comments are closed.

banner
banner
December 2014
M T W T F S S
« Nov    
1234567
891011121314
15161718192021
22232425262728
293031