| When China set up its sovereign-wealth fund in 2007, many feared that it would take control of strategic resources, acquire sensitive technology and disrupt global financial markets. But the China Investment Corporation, which controlled US$575 billion (S$787 billion) last year, has been struggling with losses, partly because of mismanagement, according to China’s National Audit Office.
Beijing set up a sovereign-wealth fund and bought US Treasuries because it needed to find a safe and profitable way to invest its vast foreign-exchange reserve, which kept expanding thanks to the country’s growing exports. China’s move today to set up the AIIB is yet another rational response to the economic challenges it faces at the moment...............................................Full Article: Source
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