Money

CIC restructuring plan under discussion: Report

(Agencies)
Updated: 2010-09-10 11:41

China is considering restructuring the China Investment Corp (CIC), its $300 billion sovereign wealth fund, for the purpose of boosting accountability, Reuters reported, citing two sources with knowledge of the plan.

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Reuters unveiled two different proposals in its report, but the final plan has yet to be settled. One proposal suggested breaking the CIC into three parts, two of which would focus on stocks and strategic resource investments, according to one unnamed source.

Another calls for the CIC and Central Huijin Investment Ltd, its wholly owned subsidiary, to part ways, a second source told Reuters.

But there is no timetable for the separation of the CIC and Huijin, said the second source cited by the report. The State Council has yet to make known its position, he also said.

Neither the CIC nor the Finance Ministry has made any comment on the report.

The CIC was set up with the aim of seeking higher returns from its investments for part of China's foreign exchange. It has been investing across the globe since it was founded up in September 2007, but lost a great deal through its investments in the US financial industry.