SAFE Investment Company

safe SAFE Investment Company

Country: China

Established: 1997

US$ Billion: $567.9

Transparency Rating: 4

Origin: Non-Commodity

Firm Investment Style: Index – Passive

Entity Structure: Corporate


Summary:

The State Administration of Foreign Exchange (SAFE) is responsible for managing China’s foreign exchange reserves. SAFE has a subsidiary in Hong Kong called the SAFE Investment Company which has made purchases in foreign equity investments. The SAFE Investment Company is organized as a privately held firm; however, SAFE officials serve on its board.

Strategy & Objectives:

They have made significant investments in the UK Equity Market. Some top holdings include: Royal Dutch Shell, Rio Tinto, BG Group, Tesco, BHP Billiton, and Barclays. This totals around US$ 6 billion in equity investments in the FTSE 100.

chinareserve SAFE Investment Company

Estimating the Size

End of Year 2005 2004 2007 2008 2009 2010
Direct investment abroad (1) 645 906 1160 1857 2458 3108
Portfolio investment (2) 1167 2652 2846 2525 2428 2571
Equity securities 0 15 196 214 546 630
Debt securities 1167 2637 2650 2311 1882 1941
Total (Rows 1 + 2) 1812 3558 4006 4382 4886 5679

Updated July 20, 2011 – USD Millions – Source: SAFE

Major Direct Foreign Investments (Public)

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