China sets up fund to bankroll corporate takeovers

February 22, 2012 by · Leave a Comment
Filed under: Global News 

No surprise that China is going to start being more aggressive with their large FX reserves.  This fund will be capitalized with $1.9 billion to start.  It will be very interesting to see where this fund starts deploying their cash in different markets.   If I had such a large base of reserves, I would want to hedge in a manner that protected my investment.  I think we will see this invested in productive assets like “stuff” not so much fiat.

One of the investments cited in the article is a  large water & sewer in the United Kingdom.  We will see more investments along those lines in my opinion.

DW: Boasting $3.2 trillion in foreign currency reserves, China has created a new fund aimed at financing takeover bids abroad. The fund also seeks to boost China’s currency in global financial markets.  In its drive to step up overseas investment, the Chinese government has set up a new fund worth 12 billion yuan ($1.9 billion), Shanghai International Group said in a statement Friday.

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