Diversifying Massive Reserves, SAFE Co-Financing is Created

ChinaChina’s State Administration of Foreign Exchange (SAFE) has created a new investment body named SAFE Co-Financing. This extension of SAFE will assist Chinese companies invest overseas by providing credit loans backed by foreign exchange reserves. Instead of allocating capital to a sovereign fund and then to a fund manager or asset, SAFE Co-Financing will allocate capital through Chinese financial institutions. These institutions will provide financing opportunities for Chinese companies in overseas investing and trade.

SAFE is trying to diversify their investment strategy in their massive pool of foreign exchange holdings. In addition, they want to maximize efficiency.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute

institutional investor investment mandates