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The press release states, “Global Logistic Properties Limited , the market leader in modern logistics facilities in China and Japan, today announced that GLP and China Investment Corporation, through their respective wholly-owned subsidiaries, have entered into a 50:50 joint venture to acquire 15 modern logistics facilities in Japan from LaSalle Investment Management  for JPY122.6 billion (US$1.6 billion).

A joint venture agreement and purchase and sale agreement were signed on 19 December 2011 by Light Year TMK. The initial equity injected by each party is JPY 21.22 billion (US$272.9 million). GLP will act as the asset manager of the acquired properties. This joint venture is the first collaboration between GLP and CIC.

The portfolio of 15 properties to be acquired will have a Gross Floor Area (“GFA”) of 770,989 sqm with more than 90 per cent of the GFA located within the Greater Tokyo and Osaka areas. The current occupancy of the properties is 98.3 per cent with a weighted average lease expiry of 5.6 years. The portfolio comprises modern facilities with a weighted average building age of only 6.9 years.

…..

Funding

The joint venture has entered into an agreement with a group of domestic Japanese banks for debt financing of JPY 81 billion (US$1.0 billion). GLP will fund its equity commitment of US$272.9 million from internal capital. No new equity needs to be issued to fund this transaction given GLP has US$1.7 billion of cash on its balance sheet as at September 30, 2011.”

Read more: Press Release

The China Investment Corporation (CIC) purchased a portion of Bank of America’s holdings in China Construction Bank (CCB) in a transaction worth around US$ 1.75 billion (2.76 billion shares). Bank of America is attempting to strengthen its capital base and build a stronger balance sheet.

Jin Liqun

In recent weeks, the China Investment Corporation (CIC) has been in the news headlines for its economic view on Europe and current investment activity in the region. It is well known over the past three decades, more importantly this last decade; China has accumulated vast foreign reserves. Created in 2007, the CIC was tasked to manage a portion of China’s financial resources.

Europe is in the midst of troubling economic times. The Chinese government has been supportive of Europe, but the real question is what will be their level of involvement in the European sovereign debt crisis? If China were to increase investment into Europe via sovereign bonds or other non-firm investments, then it must be convinced that Europe has changed.

The people in China are cognizant in where China invests and are keen for the Government of China to be a responsible commercial investor.

Europe is known for its welfare state mentality, but the world is rapidly changing and to pay for the welfare state, economies must grow by a certain percentage. Taxing and budget cuts are only short-term fixes, structural labor changes are a necessity. According to Jin Liqun, supervising chairman of the China Investment Corporation (CIC), some countries in Europe have “an incentive system totally out of whack.”[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to a press release, ” China Investment Corporation (CIC) has completed a set of preparatory work to put China Investment International (Hong Kong) Co., Limited (hereafter referred as “CIC International (Hong Kong)”), a wholly-owned subsidiary of CIC, on course to be a fully functioning institution with senior managers appointed.

CIC International (Hong Kong) will take a market-based approach under the principle of measured progress and professional commitment, in accordance with well-defined investment and risk management strategies guided by its clear mandate.

The primary business of CIC International (Hong Kong) covers equity investment and bond investment on the public market, non public market investment and economic research.

Mr. Fan Kungsheng is appointed as President of CIC International (Hong Kong).”

Source: China Investment Corporation Press Release

This past Saturday, Chinese officials from various organizations including the China Investment Corporation participated in a lengthy IMF meeting to discuss global economic and financial issues, especially regarding the stability of Europe. Over the past year, several European Governments deeply courted China to induce them to purchase their sovereign debt. The China Investment Corporation, one of China’s sovereign funds said it needs to protect its own interests first since that is what it is mandated to do. Basically, the CIC invests to make a commercial profit, not to bailout firms or governments for the sake of it.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Giulio Tremonti

Like other Southern European nations, Italy is suffering from severe sovereign debt issues. The Italian Ministry of Finance met with the China Investment Corporation to discuss possible scenarios. Recently, investors wanted greater returns and drove up the bond auction. Italy is trying to lower soaring interest rates and introduce austerity measures. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The China Investment Corporation plans to purchase a 7% stake in the Bank of Shanghai. The International Finance Corporation (IFC) which is a member of the World Bank Group is selling the stake. The IFC became a shareholder of the Bank of Shanghai in 1999. They made an initial investment of US$ 22 million for a 5% stake. This was then followed up by taking part in a rights issue in 2000. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The press release states, “as a first milestone of this cooperation, advanced exclusive talks on a €2.3 billion minority investment by CIC in the Exploration & Production division of GDF SUEZ to accelerate the development and on the €0.6 billion acquisition by CIC of a 10% stake in the LNG Atlantic liquefaction plant in Trinidad and Tobago.

GDF SUEZ and China Investment Corporation (“CIC”) have signed a Memorandum of Understanding (“MoU”) for cooperation across multiple businesses and regions, in particular in Asia Pacific. GDF SUEZ and CIC will cooperate on a non-exclusive basis to help accelerate their respective strategies by exploring areas of cooperation and co-investment opportunities. The MoU will be deployed across GDF SUEZ Group’s businesses (gas, power, water and waste, and energy efficiency services) and sets up the framework for cooperation in three areas:

(i) joint investment opportunities in existing and new energy-related projects in Asia Pacific;

(ii) financing cooperation in new projects in Asia Pacific;

and (iii) commercial sponsorship and support to GDF SUEZ in Asia Pacific region, including China, by CIC’s affiliates.

The MoU will be administered through a Steering Committee chaired by the two groups’ respective CEOs.

As the first milestone of this cooperation, CIC is in advanced exclusive talks with GDF SUEZ regarding a €2.3 billion minority investment in the Exploration & Production division of GDF SUEZ (“GDF SUEZ E&P”) (excluding the 22.5% equity stake in E.F. Oil and Gas Limited (“EFOG”)). CIC will own 30% of GDF SUEZ E&P, following a capital increase and a financial restructuring of GDF SUEZ E&P reducing its net financial debt to €0.7 billion.

The minority investment of CIC will reinforce GDF SUEZ E&P’s capital structure and will contribute to accelerate the development of this important activity for GDF SUEZ by providing the appropriate financial flexibility. Initiated in the 1990s via acquisitions followed by strong organic development, GDF SUEZ E&P has 2P reserves of 815 mmboe at the end of 2010, an annual production of 51 mmboe in 2010 and a significant portfolio of contingent resources and exploration prospects. With more than 1,500 employees in 13 countries, it generated €2.2 billion of revenues and €1.4 billion of EBITDA in 2010. The transaction values GDF SUEZ E&P (excluding EFOG) at c. €8.1 billion in enterprise value.

As part of the transaction, CIC would also acquire from GDF SUEZ a 10% stake in the train 1 of the Atlantic LNG liquefaction plant located in Trinidad and Tobago as well as production payments associated with trains 2, 3 and 4 for an amount of €0.6 billion.

The potential acquisition by CIC of a 30% stake in GDF SUEZ E&P and of its 10% stake in the LNG Atlantic liquefaction plant is part of GDF SUEZ’s portfolio optimization program of €10 billion, announced at the 2010 annual results presentation and would result in net cash proceeds of €2.9 billion. The transaction will be subject to condition precedents being satisfied and will be presented for consultation to GDF SUEZ’s employee representative bodies. The transaction could be finalized by the end of 2011. The GDF SUEZ Board of Directors views the cooperation with CIC and the transaction as having a strong strategic interest for GDF SUEZ.”

Read more: GDF SUEZ Press Release

The China Investment Corporation has a history of investing in energy companies and energy-related investment projects, especially in the Americas. A few notable deals include: AES Corp, Penn West Energy Trust, and the Chesapeake Energy Corporation. GDF Suez SA is a French firm that is involved with liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF Suez SA is near closing a deal with the China Investment Corporation. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The press release states, “On 26 July 2011, with the approval of its Board of Directors, China Investment Corporation (CIC) released Annual Report 2010 (hereafter referred to as “annual report”), the third annual report by CIC since its inception.

The annual report, consisted of Overview, Culture and Core Values, Corporate Governance, Investment Strategy and Management, Risk Management, Human Resources, Outreach Activities and 2010 Financials, provides comprehensive information on CIC’s operation and major progress in the year of 2010.

In 2010, CIC reduced its cash holdings as a proportion of total portfolio and further diversified its investment portfolios. The return on its global investment portfolio was 11.7% in 2010 and the cumulative annualized return was 6.4% since its inception.

Mr. Lou Jiwei, Chairman & CEO of CIC said in his message for the annual report that 2010 was a year of substantial growth and accomplishment for CIC. As CIC fully deployed the investible capital in its global portfolio, it continued to develop its organization and build its institutional capabilities. CIC earned a satisfactory return for its shareholder and continued to manage the risk profile of its invested portfolio effectively.”

Read more: China Investment Corporation Press Release

Recently, Chinese Premier Wen Jiabao made an official visit to several European countries as the continent struggles on how it should handle Greece’s dire economic quagmire. China views Europe as a strategic region and is continuing to invest in government debt across the continent. China is prepared to invest in European government bonds to assist the EU wave over their current predicament. In fact, China holds 12% of Spanish government debt.

China has made a compelling case that it wants to see a strong euro.

Laurence Lau, Chairman of the Hong Kong office of the China Investment Corporation believes the euro will not fall apart. He feels that the Greek sovereign debt crisis will be brought under control and solved.

Other institutional investors are not as optimistic, as Greece is facing a political divide on top of a sovereign debt mess. Some feel that countries will begin to flee the euro currency.

The China Investment Corporation has not received the proposed capital injection from the Chinese Government. It will take some considerable time and analysis.  Some members of the press and media reported the CIC already received the funding; however, the CIC is making progress on its goal of managing more funds for the Chinese Government. The CIC and other governmental stakeholders are working on a mechanism to allow the CIC to receive continued funding. Will the China Investment Corporation be the official manager of diversified governmental Chinese sovereign wealth?

Many sovereign wealth funds, especially the commodity-based sovereign funds have an orderly process of receiving fund injections in an ongoing basis. On the other hand, non-commodity-based funds often receive funds to manage through one-time transfers, not so much on a constant frequency.

Lou Jiwei, Chairman of the China Investment Corporation said that he supports greater transparency for sovereign funds; however, it comes with certain caveats.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to an interview by Reuters, Gita Wirjawan, Chairman of the Badan Koordinasi Penanaman Modal (BKPM), says the China Investment Corporation is planning to offer $4 billion in infrastructure project loans. The BKPM is an investment board that coordinates business between businesses and government. Its aim is to increase foreign direct investment in Indonesia. Another goal is for the agency to improve the lives of its citizens by creating domestic jobs. The types of Indonesian infrastructure projects were not specified. Indonesia is an Asian emerging economy with a growing middle class in desperate need of infrastructure. If the proper infrastructure is not built in a timely fashion, it can harm economic growth and decrease country competitiveness.

Most sovereign wealth funds prefer to invest in developed infrastructure in Western economies. Developed infrastructure is less risky and cash flows do not vary as much as infrastructure projects. In addition, regulation and government transparency are key planks for SWFs to plunk down significant amounts of capital. Indonesia is at an economic crossroads. The country is aiming to build over 20,000 km of roads and provide at least 15,000 MW through power plants in the next few years. Indonesia is also ripe with natural resources in oil and gas. Lastly, Indonesia is fortunate enough to be able to reap the benefits of hydroelectric power, a renewable source of energy that contributes to an overall low carbon economy.

According to the press release, “Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 0981.HK), China’s largest and most advanced semiconductor foundry, announced today a definitive investment agreement between SMIC and China Investment Corporation (CIC). Under the terms of the agreement, CIC will invest US$250 million in SMIC, acquiring 360,589,053 convertible preferred shares at HK$5.39 per convertible preferred share. After issuance and conversion of the new shares, CIC will own approximately 11.6% of SMIC’s outstanding share capital. The agreement also provides CIC with warrants for investing an additional US$50 million in SMIC on the same terms, and entitles CIC to nominate one member of SMIC’s board of directors.

“We are very pleased with our new partnership with CIC,” said Dr. Jiang Shangzhou, Chairman of SMIC. “Their investment in SMIC provides a source of capital that allows us to take full advantage of our project pipeline. Partnering with CIC is conducive to realizing our development objectives and enhancing our competitive advantage in the international arena. We welcome this investment from CIC.”"

Read more: SMIC Press Release

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Morgan Stanley Real Estate was founded in 1969. In 2006, institutional investors were lining up in droves to invest in Morgan Stanley’s real estate funds (MSREF). In fact, MSREF V generated so much investor demand that it raised almost 4x the amount of the MSREF IV Domestic Fund in 2000. Several of the larger sovereign wealth funds involved in non-strategic investment strategies were allocating even more to core real estate at this time.  High IRRs and portfolio diversification made the investment story real.  Investors were attracted by the hefty IRRs generated by the earlier funds, especially the risky opportunistic real estate funds. For example, the Irish National Pensions Reserve Fund invested in MSREF V (Domestic).[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

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Bloomberg reports, “China Investment Corp. Vice Chairman Gao Xiqing said that central banks’ quantitative easing policies are hurting the value of money just one day after the Federal Reserve maintained plans to buy $600 billion of Treasuries.

“You know money is gradually becoming not worth the paper it’s printed on,” Gao said at an event sponsored by HSBC Holdings Plc at the World Economic Forum in Davos, Switzerland today.

Recent gains in commodity and food prices reflect the “long-term view” of investors that prices will accelerate, he said. The Fed and the European Central Bank have kept their benchmark interest rates at record lows to spur their economic recoveries, triggering concern in emerging markets that the resulting flood of capital will undermine currencies such as the dollar and spark inflation.

“We’ve started collecting Zimbabwe notes,” Gao said, referring to an economy whose currency was scrapped in 2009 after inflation reached 500 billion percent.

He noted investors are also discussing whether central banks will pursue more rounds of quantitative easing.”

Read more: Bloomberg

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The China Investment Corporation (CIC) is planning to open an office in Toronto. The office will be the main center for North American investments for the CIC. Toronto was chosen over New York and London, as China’s SWF first western outpost. This is a surprise too many, since sovereign funds like the Kuwait Investment Authority, Abu Dhabi Investment Authority, and Singapore’s GIC started Western offices in cities like New York and London. There are a number of select reasons why the CIC chose Toronto over other financial centers like New York, London, and Chicago. First, Toronto is still relatively close to New York and even a fast flight to London. Toronto is also close to Calgary and Vancouver, key cities that have a large presence in the Canadian energy markets.  Second, Canada is one of the only G-7 countries that have been somewhat resilient in the financial crisis of 2008. US Financials proved to be troubling investments for several sovereign funds. From a macro perspective, Canada has a myriad of natural resource opportunities to invest in, coupled with a media and government less intrigued in protectionism. That could change overtime however.

The last office CIC opened was in Hong Kong. This marks the first step in which the CIC will begin to deploy billions directly into the Americas to diversify their holdings. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

The China Investment Corporation is seeing Manhattan as a yielding destination to park its capital. In recent years Europeans, Japanese, and Arabs have been one the largest clusters of foreign investors in New York City.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Bloomberg reports, “China’s private equity industry is “unique” because it’s dominated by the state and will follow a “different path” from overseas peers, said Xie Ping, a vice president at the nation’s $300 billion sovereign wealth fund. Entities that manage private equity in China and those that invest in such funds are primarily state-owned institutions, China Investment Corp.’s Xie said today at an event held by China Development Bank Corp. in Beijing.

The briefing was organized by the nation’s largest policy bank for its introduction of a fund that will invest in private equity. By having government backing, China’s private equity funds can increase the value of Chinese companies in which they invest, Xie said. This is an aspect of the Chinese market that is different from other countries, he said.”

Read more: Bloomberg

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Goodman Group, a large Australian property that has received investment from the China Investment Corporation is leading a consortium to takeover ING Industrial Fund. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

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Source: Merrion Street[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the Wall Street Journal, “China Investment Corp., the country’s $300 billion sovereign-wealth fund, was one of the biggest third-party investors in 3i Group PLC’s (III.LN) EUR1.2 billion growth capital fund raised earlier this year, a person familiar with the situation said Wednesday.

“3i has good ties with CIC and has been welcomed by the government there as it has been in India,” the person said, adding that 3i has been exploring raising a yuan fund that CIC could be involved in, although no decision has yet been taken.

In China, the growth of yuan-denominated funds, which don’t need government approval to buy assets there, has added to the competition. Like other international private equity firms seeking an edge in China, Blackstone Group (BX) and Carlyle Group LP are raising yuan-denominated funds, which come from local investors.

On Wednesday, CIC supervisory board Chairman Jin Liqun said the sovereign wealth fund is keen to continue forming partnerships with other fund groups in investing, but didn’t mention any specific deals.

“We have projects with different partners and to expand collaboration in the future,” Jin said in a speech at the private equity-focused Super Return Conference in Hong Kong Wednesday, but didn’t’ elaborate. “We seek to make superior risk adjusted returns and act as a stabilizing force in a world of volatility.”

Read more: Wall Street Journal

According to Reuters, “Sovereign wealth fund China Investment Corp (CIC) has pulled out of a debt-for-equity swap with Bumi Resources because of disagreement over terms, said a source with direct knowledge of the deal on Friday.

The decision by CIC is a setback for Bumi which had hoped to swap some of the $1.9 billion in debt that it borrowed from CIC last year into equity in order to reduce its gearing.

Bumi had originally planned for CIC to buy its entire $495 million share placement, sources told Reuters in June, but the coal miner has since scaled back the size of the deal to raise $362 million, priced at 2,366 rupiah per share. For most of the period since June, when talks between the two parties started, however, Bumi’s share price has traded below 2,000 rupiah.

“CIC decided to pull out from the deal because of the difference in the share price,” said the source.

“They are a sovereign wealth fund and it’s hard for them to accept Bumi’s premium.”

Read more: Reuters

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According to Reuters, “China should sell dollars and diversify its foreign exchange reserves if the United States sticks to loose monetary policy, the head of the Chinese sovereign wealth fund said in an article published this week.  Lou Jiwei, chairman of the $300 billion China Investment Corp, also offered policy advice to the United States, saying the best course of action would be for it to tighten monetary conditions while ramping up stimulus spending.  He said the United States did not have much to gain from monetary easing, because little cash was entering the real economy and a large amount was leaving the country via dollar-funded carry trades.  Under such conditions, the dollar would steadily depreciate, and Asian economies and oil exporters might lose faith in it as a global reserve currency, he said.

“For China, the chief tools to reduce economic risks are to strengthen regulation of capital flows, control liquidity through cash management, monitor asset markets and divert foreign exchange reserves to non-dollar assets,” Lou said.

The article was published this week as part of a book for the Second Summer Palace Dialogue, a meeting of American and Chinese economists that took place in Beijing.

It appeared that Lou had written the article at least several months earlier, but this was the first time that it had been published.  There is evidence that China has, in fact, stepped up its pace of foreign exchange diversification this year, cutting back its vast holdings of U.S. Treasuries and buying record amounts of Japanese and South Korean debt.  But Lou said that it was not too late for the dollar. A move toward tighter monetary policy would reduce expectations of depreciation, restrain the dollar-funded carry trade and support global financial stability, he said.  For the U.S. economy, tighter monetary policy could also pay unexpected dividends, he said.

“If the dollar carry-trade lessens and capital from Asian countries and oil-exporting countries continues to flow to the United States, then liquidity in the United States might even increase,” he said.”

Read more: Reuters

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According to the Independent, “China’s biggest sovereign wealth fund is in talks to buy a stake in one of London’s tallest skyscrapers being developed by Britain’s largest property company.

The China Investment Corporation (CIC) has approached Land Securities about taking an equity stake of up to 25 per cent in the proposed “Walkie-Talkie”, the 500 ft tower at 20 Fenchurch Street designed by Rafael Vinoly. Land Securities won planning consent for the Square Mile site two years ago after a public inquiry sparked when English Heritage and others objected to its impact on the sight lines to St Paul’s Cathedral. The 36-storey building (down nine floors from the original plan) will cost an estimated £300m to build and is scheduled for completion in 2014.

It is nicknamed the Walkie-Talkie because of its top-heavy shape, designed to maximise high-rent floor space on the upper stories.

The FTSE-100 company entered into exclusive discussions with Canary Wharf Group to jointly develop the site in June. As part of the proposed deal, Canary Wharf would build the tower. These talks are still ongoing but it is thought that CIC, a wholly owned state company based in Beijing, has entered the negotiations.”

Read more: Independent

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It was a deal of the decade, when the CIC piled cash into the ailing investment bank Morgan Stanley. Now the CIC is slowly selling shares as its investment’s stock price rebounded from the trenches, especially after the failed Morgan Stanley deal with Mitsubishi UFJ. The China Investment Corporation is always looking for the next greatest long term deal; in fact they have a whole unit dedicated for special investments.

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China’s sovereign wealth fund is set to post its best yearly gain in 2009 after stepping up investments in commodities to ride a rebound in global markets.

China Investment Corp. is likely to report a return on its global portfolio “well over 10 percent” in its upcoming annual statement, said Rachel Ziemba, London-based senior analyst at Roubini Global Economics. The $300 billion fund had a 2.1 percent loss on its global assets in 2008, after chalking up a 0.2 percent return in its starting year of 2007 when the value of a $3 billion investment in Blackstone Group LP plunged.

Chairman Lou Jiwei pumped nearly $10 billion into commodity-related companies such as Canada’s Teck Resources Ltd. in the second half to benefit from the global economic recovery. That compared with $4.8 billion in new investments across all industries for the entire 2008.

“2009 results should be good because commodities staged a strong rally,” said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong. “CIC was very timid, which actually helped it to avoid the financial tsunami” in 2008.

According to the CIC press release, “CIC recently appointed Mr. John Mack and Mr. Joseph Yam as members of its International Advisory Council (“the Council”), to serve a term of two years. Meanwhile Mr. Arminio Fraga and Mr. Lawrence Lau resigned from the Council due to personal reason or concern on potential conflict of interest in business.

Mr. John Mack is Chairman and former CEO of Morgan Stanley; Mr. Joseph Yam is Executive Vice President of the China Society for Finance and Banking, and former Chief Executive of the Hong Kong Monetary Authority.”

Source: China Investment Corporation Press Release

According to the press release, “The AES Corporation (NYSE: AES) and China Investment Corporation (CIC) announced today that their non-binding Letter of Intent for a 35 percent investment in AES Wind Generation, which was signed on November 6, 2009, expired as of June 30, 2010. AES and CIC may resume discussions as additional clarity develops surrounding renewable energy legislation in the U.S.”

Read more: Press Release

According to the NY Times, “A company here that is partly owned by the Chinese government has quietly purchased a 5.1 percent stake in the only American-owned provider of enriched uranium for use in civilian nuclear reactors. The company that bought the stake, the Noble Group, is the world’s second-largest commodities trading and logistics company after Cargill and is based here. One of its minority owners is the Chinese government’s sovereign wealth fund.

The American company is USEC, which is based in Bethesda, Md., and enriches uranium so that fission can occur in nuclear reactors. It currently supplies enriched uranium for use in the United States, Japan, South Korea and Taiwan. Noble said in a filing with the Securities and Exchange Commission that it had purchased the shares on the open market from May 25 to June 2.

Read more;: NY Times

According to Market Watch, “a senior official with China’s massive sovereign-wealth fund said Tuesday that while 2009 was good for the nation’s market investments, this year is proving to be tough, according to reports.

In rare public comments, China Investment Corp.’s Executive Vice President Jesse Wang said recent corrections in Western markets had peeled off one-tenth of the fund’s value.

“In May and June, because of the decline of the U.S. market and European market, we had about 10% mark-to-market losses,” Wang was quoted as saying at an event hosted by the Federal Reserve Bank of San Francisco.

The recent drop compared to gains for 2009, which Wang called “a good year for us,” as CIC managed a return of 11% overall and more than 17% if results from its domestic arm Central Huijin Investment Ltd. are excluded, according to Reuters.

Official 2009 results for CIC, which has approximately $300 billion under management, are slated for release sometime in the next two months.

Wang said that while CIC had hope bonds and other fixed-income holdings would shield it from volatility, this portfolio was hit by the euro’s fall against other major currencies, according to Dow Jones Newswires.

Read more: Marketwatch

According to the press release, “Penn West Energy Trust (“Penn West”) is announcing the closing of the previously announced joint venture partnership (the “Partnership”) with an affiliate of China Investment Corporation (“CIC”). The Partnership has been formed to develop Penn West’s bitumen assets located in the Peace River area of northern Alberta (the “Assets”). Penn West contributed the Assets valued at approximately $1.8 billion to the Partnership and has retained a 55% interest in the Partnership. CIC has acquired a 45% interest in the Partnership by investing approximately $312 million in the Partnership (which has been paid to Penn West by the Partnership to satisfy outstanding indebtedness to Penn West) and committing to carry a portion of Penn West’s share of the Partnership’s future capital and operating expenses totaling approximately an additional $505 million. An affiliate of Penn West will serve as operator of the Assets.

Penn West also closed the previously announced private placement of 23,524,209 trust units of Penn West to an affiliate of CIC for proceeds of approximately $435 million.

Penn West will use the approximately $747 million of proceeds received for general corporate purposes.”

Source: Penn West Press Release

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The views, opinions, positions or strategies expressed by guest contributors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of the Sovereign Wealth Fund Institute or any employee thereof.

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Press release states, “Goodman Group (Goodman or the Group) announces that it has signed a Memorandum of Understanding (MOU) with the Langfang Municipal Government to participate in the development of a premier business and logistics hub for the greater Beijing-Tianjin area in northern China.”

Later on it reads, “Mr Goodman said, ‘This announcement, which has been made possible through the strength of our cooperation with the China Investment Corporation (CIC), marks an important step in the continued development of our Asian business and is a further indication of our growing and longterm commitment to the China market. Goodman expects to generate fee income over the life of the project and will also consider further investments for itself and its investment partners in the development of logistics and business park product at the site on a case by case basis.’”

read more: Goodman Press Release

According to the Press Release, “Penn West Energy Trust (“Penn West”) is pleased to announce it has entered into an agreement (the “Agreement”) with a wholly-owned subsidiary of the China Investment Corporation (“CIC”) to form a joint venture (the “Joint Venture”) that will develop Penn West’s bitumen assets located in the Peace River area of northern Alberta (the “Assets”). CIC has also agreed to purchase trust units (“Units”) of Penn West on a private placement basis (the “Financing”). Strategic Rationale Penn West is committed to an exploration and production strategy which will fully assess and realize the potential of its extensive resource play portfolio.

The Joint Venture is an important element of our strategy as it provides for the development of the Assets from the current resource appraisal phase through to commercial scale development and production. The cash proceeds from the Joint Venture and the Financing provide Penn West with additional financial flexibility to strategically advance the development of its significant ownership of light-oil resources.

Penn West and CIC believe the Assets to be a ‘world-class resource’ and as such view the production and reserves potential of this project to be substantial. CIC’s financial commitment, combined with Penn West’s operational resources, will enable the Joint Venture to complete the resource appraisal of the area and accelerate development.”

Read more: Penn West Energy Trust Press Release

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Xinhua reports, “China Investment Corporation (CIC) will soon reshuffle its senior managerial posts as the country’s sovereign wealth fund and other top state-owned lenders are gearing up for the initial public offering of Agricultural Bank of China, reported Saturday’s China Daily.

Vice President of Bank of Communications (BankComm) Peng Chun will soon replace Xie Ping as general manager of Central Huijin Investment Ltd., the domestic entity of China’s sovereign wealth fund, the daily cited “people with knowledge of the matter” as saying.

The English-language newspaper said Xie would remain a vice president of China Investment Corporation (CIC), which manages 300 billion U.S. dollar sovereign wealth fund.”

read more: Xinhua

According to Reuters, “China Investment Corp (CIC), the country’s $300 billion sovereign wealth fund, has cut by half, to $100 billion, the amount of new funding it is seeking from the government, according to domestic media.

An earlier proposal by CIC to the finance ministry for $200 billion in additional funding was not approved, the China Business News said, citing an unnamed source.

Media reports early this year and late last year said that CIC was seeking an additional $200 billion in cash to manage. The fund completed most of its investments for its initial funding in 2009, leaving relatively little cash on hand, but whether it would receive new funding was up to the central government to decide, Executive Vice President Jesse Wang said last month.”
read more: Reuters

According to Reuters, “China Central Huijin Investment Ltd., the domestic arm of China’s sovereign wealth fund, has applied for a $50 billion cash injection from the Chinese government, the National Business Daily said on Wednesday.

China Investment Corp (CIC), parent of Huijin, has submitted an application for cash aid to the State Council, the country’s cabinet, the semi-official paper said, citing an unnamed CIC source.

“The $50 billion Huijin requested may come from the foreign exchange reserves or other financial resources,” the source was quoted as saying.”

read more: Reuters

According to Business Week, “China’s $300 billion sovereign wealth fund sees a “good opportunity” to boost private-equity investments this year, as companies are undervalued after losses from the global financial crisis.

‘A lot of companies’ valuations are relatively low currently, and investors of many private-equity funds don’t have money to invest,’ China Investment Corp. Executive Vice President Jesse Wang said in an interview with the official Xinhua News Agency today that was broadcast online.

CIC had “double-digit” returns from its overseas portfolio last year, Wang said, without being specific. The company increased spending on energy and minerals assets in 2009 to profit from the global economic recovery, announcing almost $10 billion of investments in commodity-related companies.”

read more: Business Week

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According to MarketWatch, “China’s sovereign wealth fund said responsibility for any potential bailout of Greece should fall primarily on the European Union, marking the first official comments by the fund since reports in January that it was considering the purchase of Greek debt.

China Investment Corp. Executive Vice President Jesse Wang said helping Greece wasn’t within its main mission of chasing up sound financial returns, according to a report Friday by The Wall Street Journal. ‘Aiding Greece looks like a policy goal,’ Wang was cited as saying in the report. ‘If the E.U. is unwilling to help, how can you expect others to act as a white knight and save Greece?’“

read more: MarketWatch

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