| 29.07.2008 - SAFE should stay out of CIC's way |
| Michael McCormack, an executive director at Z-Ben Advisors, on Sunday had an article published at ChinaStakes.com that looks at China’s State Administration of Foreign Exchange (SAFE), compares it with the China Investment Corporation (CIC) in the context of foreign investment, and discusses some of the issues raised by SAFE’s acting as a sovereign wealth fund. Among other things, the article states that, “While most foreign governments accept that their peers will buy and sell their sovereign debt as an exchange management tool, they are unlikely to accept the danger that SAFE (or, indeed, similar investors) might also be tempted buy or sell company debt, shares, fund or index positions as part of that effort. Such fears makes it unclear that SAFE could pass regulatory tests designed to bar or restrict investors who have currency management responsibilities.”... Full article: Source |