| Tools: Save | Print | E-mail | Most Read |
| Fledgling Forex Company to Make First Investment |
| Adjust font size: |
China's state foreign exchange investment company, which will launch formally before the end of the year, has already hit upon its first investment opportunity. The recipient will be US private equity firm the Blackstone Group which will see an investment of US$3 billion, according to a joint news release.
Wang Jianxi, Chairman of the China Jianyin Investment Limited (China Jianyin), told Xinhua Monday that under an agreement signed the day before, the new company would purchase a non-voting stake in Blackstone, worth less than 10 percent. China Jianyin, a state-owned investment company, will be merged with the state forex investment company to boost the credentials of the new entity. According to the news release, the deal will be closed as Blackstone launches its four billion US dollars initial public offering (IPO) in mid June. The Chinese side will be able to buy shares at 95.5 percent of the IPO price and to hold them for a period of at least four years. "We are very pleased to make our very first investment in such a well-respected firm as Blackstone," said Lou Jiwei, who is overseeing the new investment company's creation. "We welcome the state investment company as our stake holder and are proud to be part of this historic transaction," said Stephen A. Schwarzman, Chairman and CEO of Blackstone, specifying that US government approval was not necessary for this deal since it was a purely commercial venture, worth less than 10 percent of the company. As a core investor, the state forex investment company should profit from Blackstone's private equity firm's investment and rise in share prices, Wang said. He noted that the forex investment company may also invest in other global asset management leaders. The forex investment company was first announced in March by Chinese Premier Wen Jiabao at the closure of the annual session of China's top legislature and will possess an independence born from having no affiliation to any specific government department or institution. However, it will operate under state supervision. Wen announced its remit as being tasked with making judicious investments to preserve and increase the value of foreign exchange reserves. By the end of March, China's foreign exchange reserves had seen a 37.36 percent annual rise to top US$1.2 trillion, mainly lying in low-yielding dollar bonds. (Xinhua News Agency May 22, 2007) |
| Tools: Save | Print | E-mail | Most Read |
 |
| Related Stories |
|
Product Directory China Search |
Country Search Hot Buys |
