State Owned Enterprise

Chinese Government Announces State Enterprise Restructuring Fund

The Chinese government continues to take steps to reform many of its uncompetitive state-owned enterprises (SOE), while trying to reduce the debt burden on them as demand slows in areas such as steel, cement and coal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Kenya Dreams of a Sovereign Wealth Fund

Africa is rising. This is the narrative being spun by journalists, dealmakers, policymakers and academics. Kenya, an East African nation, has traditionally focused on agriculture, tourism, manufacturing and service industries – a contrast to other countries in the region that are developing mineral extractive industries. Mining composes a miniscule slice of gross domestic product for […]

Central Huijin Invests 20 Billion Yuan in China Export and Credit Insurance Corp

Export credit financing is one instrument used by governments to support domestic exporters. In China, export financing and insurance are directed through three organizations, China’s Eximbank, the China Development Bank (CDB), and the China Export & Credit Insurance Corporation (Sinosure). China has poured hundreds of billions in the last few years to achieve an aggressive […]

Libya’s NOC Projected to Generate $54.9 Billion in 2012

Libya’s National Oil Corporation (NOC) from its website stated that it expects to generate $54.9 billion in revenue from oil and natural gas this year. Revenue would be derived from exports and taxes on oil companies operating in Libya. The NOC was founded on November 12, 1970 when it replaced the Libyan Petroleum Corporation. Libya […]

CNOOC Limited Enters Into Definitive Agreement to Acquire Nexen Inc.

According to the press release, “CNOOC Limited (SEHK: 00883, NYSE: CEO) and Nexen Inc. (TSX: NXY, NYSE: NXY) announced today that they have entered into a definitive agreement under which CNOOC Limited will acquire all of the outstanding common shares of Nexen for US$27.50 per share in cash. The purchase price represents a premium of […]

Domestic Private Equity Exposure to Accelerate for China’s NSSF

China’s National Social Security Fund (NSSF) is planning to accelerate allocation to domestic private equity funds. By the end of 2012, the NSSF plans to increase exposure to domestic private equity funds from 19.5 billion yuan to 30 billion yuan. The NSSF could have allocation of around 50 billion yuan by 2015. Allocations will most […]

Slovenia to Consolidate State-Owned Assets into Proposed SWF

Slovenia is planning to consolidate state-owned assets into a sovereign wealth fund. By merging the different agencies, Slovenia hopes to enhance revenue and improve organizational efficiency. The five agencies manage assets of more than €10 billion. Over time, the Government of Slovenia will decide which assets to dispose of. The proposed sovereign fund’s profits will […]

A Future Kenyan Strategic Development Sovereign Wealth Fund

Policymakers in Kenya are in discussions in creating a sovereign wealth fund (SWF). Currently, state-owned enterprise (SOE) profits are paid into the treasury or to the Kenyan Ministry of Finance as a dividend to the government. Kenya plans to use profits from state-owned enterprises to fund a sovereign wealth fund. This strategic development sovereign wealth […]

ICBC, CIC, and Central Huijin Get Fed Approval to Acquire US Retail Bank Shares

The Industrial and Commercial Bank of China Limited (ICBC), China Investment Corporation, and Central Huijin Investment Ltd. received approval from the Federal Reserve on Wednesday to acquire shares of a bank unit. ICBC is on a campaign to acquire overseas assets to reduce exposure in the domestic market. In addition, Chinese banks are eager to […]

Possible Progress on China’s Involvement with Italian and EU Investments

Italy along with other European nations are trying to convince countries with major current account surpluses to further investment in their government bonds and/or the Eurozone bailout funds. Italian Prime Minister Mario Monti has passed a series of spending cuts, tax increases, and pension reforms to cut Italy’s mega public debt pyramid. It is a […]

IPIC and Mubadala Oil and Gas Create Emirates LNG

Natural gas is gaining tremendous traction among many nations as a viable alternative to oil, especially with the discovery of new extraction and transportation technologies. Sovereign wealth funds and state-owned companies, particularly in Asia and the Middle East are hedging their bets on natural gas and other forms of fuel besides crude oil. Some notable […]

Hillary Clinton Remarks on State Capitalism and SWFs

On February 19, 2012, U.S. Secretary of State Hillary Rodham Clinton made some remarks about state capitalism and sovereign wealth funds at the G-20 Ministerial in Los Cabos, Mexico. Hillary Clinton stated, “Second, I would like to talk candidly about the challenges countries face from the emergence of what has been called “state capitalism”—the rise […]

Saudi Aramco and Sinopec Create YASREF JV

According to the press release, “Saudi Aramco and China Petrochemical Corporation (Sinopec) have agreed to formation of a joint venture related to the ongoing development of Yanbu Aramco Sinopec Refining Company (YASREF) Limited, formerly the Red Sea Refining Company. Presided over by His Excellency, Ali Ibrahim Al-Naimi, Minister of Petroleum and Mineral Resources and chairman […]

Qatar Petroleum and Shell Sign Complex Development Agreement

According to the press release, “His Excellency Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry of the State of Qatar, and Peter Voser, Chief Executive Officer of Shell, signed today a Heads of Agreement that sets the scope and commercial principles for the development of a world-scale petrochemicals complex in Ras Laffan Industrial […]

Samsung C&T and KNOC Jointly Acquire Parallel Petroleum LLC

The press release states, “Samsung C&T and the Korea National Oil Corporation (“KNOC”) will jointly acquire US oil and gas company Parallel Petroleum LLC (“Parallel”). Samsung C&T Oil & Gas Parallel Corp., Samsung C&T’s local subsidiary in the US, and KNOC signed a Purchase and Sale Agreement with PLLL Holdings, LLC, which owns Parallel, in […]

Swiss Waits for UN Green Light on Libya’s Frozen Assets

Switzerland is a major destination for foreign investments and international banking for governments. Regimes that are not in line with the United Nations have grown concerned about the safety of their overseas assets. Venezuela has shifted money and gold overseas back to Caracas. The Libyan Investment Authority and other Libyan state-owned assets were frozen internationally […]

Georgia Seeks to Open up SOEs to Investors

Georgian Prime Minister Nikoloz Gilauri has proposed legislative amendments to start privatization efforts in several large state-owned enterprises. The amendments include floating minority stakes in the SOEs which could be on the Warsaw and London stock exchanges. The minority stakes could range from 15 to 25% of the SOE. Russia and other Central Asian countries […]

State of Indonesian State Owned Enterprises

Indonesian state-owned enterprises (SOEs) play a major part in the Indonesian capital markets. In September 2010, listed SOEs contributed to 29.5% of the total market capitalization on the Indonesian Stock Exchange. Like Malaysia and other Southeast Asian countries, Indonesia wants to increase privatization to drive the development of their capital markets and diversify sectors. Hatta […]

Beijing’s SASAC to reorganize some SOEs in a new holding company, China Reform Holdings Corporation Ltd

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Rio Tinto Group Scraps Chinalco Deal

NY Times reports, “the Chinese government’s largest investment ever in a Western company, a proposed $19.5 billion stake in the Australian-British mining giant Rio Tinto Group, collapsed early Friday, dealing a blow both to China’s global corporate ambitions and to its efforts to gain clout in the natural resources market. The board of Rio Tinto […]